Abstract
The income definition that has undoubtedly received most support from German and American tax theorists is the Schanz-Haig-Simons concept of demanding comprehensiveness (cf. Goode, 1977, p. 7). The idea is that all income should be taxed alike, irrespective of the source. If at all other income concepts are considered, then the discussion typically narrows down to ail act of choice between competing tax bases. Thus, Goode’s otherwise commendable survey of income concepts ends with “the conclusion that the S-H-S definition of income is much better for tax purposes than other definitions” (Goode, 1977, p. 28). It is not that conceptual and administrative problems were played down or even denied, it is that other concepts such as the Hicksian (1939, 1968) economic yield of capital, axe seen as posing even more problems.
This paper benefited considerably by intensive discussions with W. Buchholz and H.-W. Sinn. Herewith I would like to thank both colleagues. It is only in the process of printing that Fane (1987) came to my attention. The reader might wish to consult this reference in connection with section 5.
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Richter, W.F. (1988). Comprehensive versus Neutral Income Taxation. In: Bös, D., Rose, M., Seidl, C. (eds) Welfare and Efficiency in Public Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-73370-3_10
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DOI: https://doi.org/10.1007/978-3-642-73370-3_10
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