[PEN-L:4851] asset tax

[ROSSERJB@xxxxxxxxxxxxxxxx]

     I sent a message on this before which
has not shown up yet.  If this becomes a
repeat, I apologize in advance.
     Asset taxes may be shifted forward to
poor people.  The most widespread asset tax
in the US is the local property tax, #1
source of local revenue.  Although there is
disagreement empirically, most recent studies
claim that it is regressive, largely shifted
forward to poor renters.  Also there a
asset holders with low incomes, e.g. retired
homeowners with paid-off mortgages and
some farmers.
     A similar incidence problem shows up
with the corporate profits tax which gets
significantly shifted forward to consumers
hence becoming somewhat regressive (I realize
that it is not an asset tax).
    Taxing capital gains fully and catching
wealth transfers at inheritance are clear ways
to really get at asset wealth.  Otherwise,
probably better off with progressive income taxes.
Barkley Rosser
James Madison University