Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205404 
Authors: 
Year of Publication: 
1999
Series/Report no.: 
New Zealand Treasury Working Paper No. 99/01
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
There is a wide consensus amongst economists that a cash-flow tax, in concept, is superior to an income tax. The most difficult problem is the transition, which can create either a huge fiscal cost, very large compliance costs or economic dislocation. This paper explores a set of rules that could potentially avoid economic disruption yet keeps fiscal and compliance costs to a manageable level. Features are a general tax exemption for interest and dividends, a cash-flow tax for increments to the existing capital invested in business activities and continuation of income tax rules for existing capital. The paper identifies general areas where further development of the rules is required.
Creative Commons License: 
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Document Type: 
Working Paper

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