Aims: To address issues of taxation by application of economic theory.
Learning Outcomes:
To enable students to appraise taxation by reference to well-defined economic criteria. Students will be equipped with skills required to appraise policy proposals and to evaluate research findings. The unit is theoretical and the emphasis is on analysis rather than description.
Skills:
Ability to develop rigorous arguments through precise use of concepts and mathematical models (Taught/Facilitated/Assessed).
Ability to select, summarise and synthesis written information from multiple sources (T/F/A).
Ability to select and use appropriate ideas to produce a coherent response to a pre-set question (T/F/A).
Comprehensive and scholarly written communication (T/F/A).
Concise and effective written communication (e.g. briefings / written exams) (T/F/A).
Effective oral communication (e.g. lecture question and answer) (F).
Ability to apply theory to policy areas (T/F/A).
Content:
Efficiency and excess burden of taxation. Tax incidence; partial and general equilibrium analysis; Taxation and incentives; impact of income tax on work effort; role of tax expenditures. Tax evasion and tax policy. Benefit Principle and Ability to Pay approaches to taxation. Taxation versus government borrowing.Optimal taxation: 'normative' and 'positive' constitutions. Tax implications of decision making by different voting rules. Compliance costs of taxation. Empirical analysis of tax evasion and the 'hidden economy'. Recent tax reforms.
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