Public Finance, 2nd Edition

Tax amnesties, purpose and eVectiveness, 519

Tax avoidance

distortion loss, 423

evasion comparison, 512±513

Tax bases, non-Haig±Simons income, 341

Tax capitalization, personal income taxation,

365±367

Tax concentration curve, Lorenz±Gini tax

incidence, 597±598

Tax distortion

basic questions, 400±401

deWnition, 399±400

general equilibrium price models, 402

loss measurement

direct versus indirect taxation, 422

income tax eYciency, 419±422

overview, 402±403

partial equilibrium analysis, 403±404

personal income tax eYciency cost,

428±429

proportional taxes, 418±419

single-market measurement, 423±425

tax avoidance, 423

total and marginal dead-weight loss,

425±428

zero-tax versus existing-tax economy,

417±418

loss measurement, general equilibrium

analysis

basic analytics, 409±411

geometry, 404±409

marginal loss, 411±413

total loss for tax pattern, 413±417

tax substitution eVects on welfare loss,

439±441

Taxes

ad valorem, general tax equivalence,

541±545

aggregate production externalities, 221±222

beneWts-received principle, 179±184

broad-based, see also Broad-based tax

CAC policy, 246±247

capital gains, 368±370, 378

Auerbach±KotlikoV OLG model, 615

Auerbach proposal, 376±378

Vickrey proposal, 375±376

changes, eVects on social welfare, 478±482

Clarke taxes, preference revelation, 184±187

commercial property taxes, median voter

model, 912

commodities, see also Commodity tax

consumption, Auerbach±KotlikoV OLG

model, 615

corporation income

Harberger incidence model, 549±566,

569±570

Pechman±Okner studies, 590±592

credit income, broad-based cash transfers,

634±635

dead-weight loss, see also Dead-weight loss

and Tax distortion

direct±indirect mix, 502±503

direct versus indirect, 422

excise, Pechman±Okner studies, 589±590

expenditures

deWnition, 346

income taxation comparison, TRA86,

347±348

federal personal income, see also Federal

personal income tax

Xypaper eVect, 924±925

general, equivalence

basic theorem, 541±545

overview, 540±541

human capital, 378±382

imperfect,

CAC approach comparison,

252±253

implicit, Boiteux problem, 685

income

consumption comparison, 345±347

eYciency properties, 419±422

expenditures taxation comparison,

TRA86, 347±348

indirect/direct tax mix, 502±503

industrial property, median voter model,

912

local property

incidence, 568±569

Pechman±Okner studies, 590±592

nonoptimal, see also Nonoptimal taxes

optimal commodity, see also Optimal

commodity tax

optimal federalism mobility, 859

optimal income, see also Optimal income

tax

pareto-eYcient, see also Pareto-eYcient tax

partial, aggregate production externalities,

223

payroll, social security, Pechman±Okner

studies, 589

personal income, U.S.

eYciency cost, 428±429

Pechman±Okner studies, 588

tax loopholes, 364±370

Pigovian, see also Pigovian tax

pollution standards legislation, 243±245

INDEX 947