Aspects of tax policy
Professor John Head
One 3-hour session per week * Second semester * Clayton * Prerequisites: ECO4650 and ECO3810 or equivalents
Objectives On completion of this subject students should be familiar with relevant theoretical and empirical literature on the economics of taxation at an advanced level; be able to apply advanced theory and the results of empirical research to the analysis of specific issues in taxation policy; have developed a high level of understanding of major tax reform issues in Australia; have developed an appreciation of the evolution of Australian taxation policy in the context of developments in taxation policy overseas.
Synopsis The subject is concerned with the application of economic theory and the results of empirical research to the evaluation of major issues in the area of taxation policy. Standard public finance principles of equity and efficiency will be reviewed. Particular attention will be paid to measures of the welfare cost and redistributive effects of taxation and to possible implications for saving and economic growth. Specific structural reform issues to be discussed will be drawn from current policy issues in the area of personal income tax, capital gains tax, company income tax, direct and indirect consumption taxes, wealth tax and international tax.
Assessment Examination (3 hours): 100%