Efficient Taxation of Income

Efficient Taxation of Income

The Efficient Taxation of Income is an approach to economic efficiency that would result from making the tax treatment of income from corporate, non-corporate and household property the same.[2] The plan has been discussed before the United States Congress but a bill has not been introduced.[3]

Under Efficient Taxation of Income, each dollar of new business investment would generate a credit against taxes on business income. The rates for these credits would make tax burdens on all income sources the same. Taxes on new investments by households would be collected by car dealers, real estate developers, and other providers. These would not apply to existing home owners and would protect property values. Jorgenson states that the Efficient Taxation of Income could be implemented without cumbersome transition rules. In the Flat Tax would yield only $2,060 billion.[4] The gains underscore the benefits of shifting investment to higher-yielding assets and reflect greater investment and faster economic growth.

See also


  1. ^ Jorgenson, Dale; Yun, Kun-Young (2002-11-15). "Efficient Taxation of Income". Harvard. Retrieved 2007-07-17. 
  2. ^ Jorgenson, Dale (2002-06-18). "A Smarter Type of Tax".  
  3. ^ Jorgenson, Dale (2002-05-09). "Hearing on the Extraterritorial Income Regime". House Committee on Ways and Means. Retrieved 2007-07-18. 
  4. ^ Jorgenson, Dale (2003-04). "Efficient Taxation of Income".  


  • Jorgenson, Dale; Yun, Kun-Young (2002). Investment, Vol. 3: Lifting the Burden: Tax Reform, the Cost of Capital, and U.S. Economic Growth (Hardcover ed.). The MIT Press. ISBN 0-262-10091-6. 

External links

  • Jorgenson's Harvard biography