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A Critical Look at the Economic Argument for Taxing Only Labor Income

Chris William Sanchirico, University of Pennsylvania Law School & Wharton School

Abstract

According to accepted wisdom, "the tax substitution argument" fairly establishes that it is best to tax only labor income, and not also income from savings and investment. In this Article, I show that the tax substitution argument-which is actually a disjointed collection of arguments-is variously incomplete, incorrect, and conclusory.

Suggested Citation

forthcoming 63 Tax L. Rev. ___ (2009-10)