Chapter

Taxation and Growth

Maurice FitzGerald Scott

in A New View of Economic Growth

Published in print June 1991 | ISBN: 9780198287421
Published online November 2003 | e-ISBN: 9780191596872 | DOI: http://dx.doi.org/10.1093/0198287429.003.0014

Series: Clarendon Paperbacks

 Taxation and Growth

Show Summary Details

Preview

Conceptually, taxes are on wages, on capitalists’ take‐out, and on savings, actual taxes being a mixture of these. Putting aside the effects on growth of expenditures financed by taxation, taxes on wages reduce growth by reducing human investment, fostering the black economy and leading to cost‐push inflation. Taxes on take‐out have no effect on growth except by encouraging tax evasion. Taxes on savings reduce growth, and have been imposed at widely differing rates with no clear economic rationale and marked effects on patterns of savings and investment.

Keywords: capitalists’ take‐out; growth; inflation; savings; tax evasion; taxes; wages

Chapter.  17228 words. 

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.