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The future of capital income taxation

Conference paper
Despite our limitations as forecasters, economists are prone to thinking about the future. A declining number of economists see a future for capital income taxation. The disenchantment with capital income taxes is not new, of course. Joseph Pechman's 1990 presidential address to the American Economic Association had a title similar to mine ('The Future of the Income Tax'), and took on many of the issues I will address here. Pechman concluded that 'there is no good reason for the disenchantment of economists with the income tax. The main rival of the income tax - the consumption expenditure tax - is distinctly inferior on theoretical as well as practical grounds.'

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Press release
Taxing inheritance may be unpopular, but it has an important role to play in the tax system, Alan Auerbach, Professor of Economics and Law at the University of California at Berkeley, argues in the Institute for Fiscal Studies' 2006 annual lecture.