The Resource The quiet costs of taxation : cash taxes and noncash bases

The quiet costs of taxation : cash taxes and noncash bases

Label
The quiet costs of taxation : cash taxes and noncash bases
Title
The quiet costs of taxation : cash taxes and noncash bases
Creator
Subject
Language
eng
Summary
Tax law gives relief to "illiquid" taxpayers, those with income or wealth but no cash. This relief results in revenue losses, creates opportunities for tax avoidance, and distorts economic decisions. And yet, we don't know how much hardship is actually created by illiquidity. This article provides a framework for determining the magnitude of that hardship. The framework reveals that the costs of selling property or borrowing money to pay taxes in cash are not the only costs borne by illiquid taxpayers; they may also have to make painful adjustments in their current consumption or retirement savings plans. These are the "quiet" costs of taxation. The author shows that illiquidity hardship can be quantified in dollar terms and thereby placed on the same scale as other considerations that go into the evaluation of tax law and policy, allowing it to be weighed in the balance and making it possible to identify the contexts in which it truly matters. He demonstrates that illiquidity hardship is a meaningful concern in the property tax context but is a weak justification for the "realization" requirement under federal income tax law
Citation source
In: Tax law review. - New York. - Vol. 71 (2018), no. 4 ; p. 781-826
http://library.link/vocab/creatorName
Hayashi, A.T
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • property tax
  • income tax
  • mortgage
  • disposal
  • savings
  • adjustment (of income, capital)
  • tax rate
Label
The quiet costs of taxation : cash taxes and noncash bases
Instantiates
Publication
Label
The quiet costs of taxation : cash taxes and noncash bases
Publication

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