PADP 6930 Lecture Notes - Lecture 9: Ordinary Income, Casualty Loss, Negative Income Tax

• School: University of Georgia
• Department: Public Administration and Policy
• Course: PADP 6930
• Professor: Moldogaziev

Document Summary

Lecture 9 : taxation of income: rules for understanding income taxation (1) income is good (2) long term capital gain > ordinary income (3) tax-exempt income is best (4) depreciation is good. Why keep the income tax: diversity of tax portfolio, consumption taxes would need to increase to cover the income tax loss , federal gov"t would be moving into state tax instrument area , federal gov"t provides jobs through macro policy. Income taxes in us: three levels of government > local, state, federal, three bases > individual, corporate, & payroll, among oecd states: Higher top marginal rates: less developed countries use individual income taxes less heavily. Adds to agi certain in-kind income (e. g. food stamps), imputed income (e. g. Adds to agi certain in-kind income (e. g. food stamps), imputed income (e. g. imputed retail income from oo housing), & accrued capital gains (clinton. Adds to agi exempt interest, cash transfers, retirement bene ts, employer payroll tax payments.