Consumption Tax in Taiwan -- Annual V.S. Lifetime Tax Incidence

• Main Authors: Wu Yen-Ting, 吳妍婷
• Other Authors: Steve Tsui
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/68544742677127145180

碩士 === 國立中興大學 === 財政學研究所 === 86 === Traditional studies that compute tax incidence on the basis of current expenditure relative to current income find consumption taxes to be regressive. If consumption decided are not based entirely on contemporaneousincome or if the population shows significant income mobility over the lifetime, incidence studies limited to observing individuals only at a point in time may not be very informative. The regressivity of the consumption tax has been challenged on the grounds that the use of annual as opposed to lifetime income. In this study, we seek to increase our understanding of the incidence of consumption tax which including business tax, exercise tax, cigarette tax and gasoline tax by examining tax incidence in a life-cycle framework. We find that the business tax burden and the exercise tax burden are slightly progressive than annual burden, but the cigarette tax and gasoline tax burden are slightly less regressive than annual burden.