The Revenue Responsiveness of Income and Consumption Taxes in the UK
Abstract:This paper provides new estimates of the revenue elasticities of income and consumption taxes in the UK over the period 1989–2000. Using new analytical expressions for consumption taxes, these elasticities are estimated from information on relatively few parameters, almost all of which are readily available from published sources. Changes in consumption patterns over time, and income tax parameters, are found to be important for the magnitude of consumption tax elasticities.
Document Type: Research Article
Publication date: 2003-12-01