C. Lowell Harriss

Tax Policy for Economic Progress

Abstract. Developing countries, in constructing modern tax systems, would do well to adopt policies based on proven economic principles so that fiscal instruments do not perpetuate stagnant economies and underemployment of labor and resources. To achieve growth and jobs and ever higher levels of living, they should avoid the mistakes of the United States and many other industrially developed countries in burdening business—enterprises production—with heavy and obstrusive taxes. They, and developed countries as well which are committed to progressive change based on tax reform, like the United States, should use land values where possible to finance local governments so as to avoid taxing the other factors of production. And where necessary taxes should be levied on consumption, for taxes on business income misallocate resources and hamper market discipline in promoting output and efficiency.

Efficiency in State and Local Government Expenditures

The large and growing size of state-local spend ing makes the search for efficiency increasingly important. The biggest issues are those dealing with program elements, but operations and management also involve large amounts. The concept of efficiency in government spending presents dif ficult problems, several being noted as helping to explain apparent slowness in achieving results. Ten factors associated with the growth of state-local spending and obstacles to ef ficiency are identified. One line of progress is to improve organization as such, and much has already been done in some states and localities. Various factors continue to delay actions having much promise of good results. Central supervision of local activities can both help and hurt. To date, methods of tested success in the quest for improvement are less generally used than reason would indicate as feasible to raise the quality of accomplishment and reduce cost. The same applies to personnel policies. The large portion of total spending which goes for salaries makes personnel practices of key significance. Civil service merit systems, though extensive, are far from universal in state-local government. Fourteen specific areas for improving operating methods are listed, with the conclu sion that general adoption of means which experience has shown can yield good results would produce significant cumu lative benefit. Improvement of purchasing methods is one of the more important. Special commissions and permanent non- official groups have a record of accomplishment which argues for an expansion of their use.

Classics in the Theory of Public Finance.

Preface - Preface to the Fourth Impression - Preface to the Reissue - Introduction R.A.Musgrave & A.T.Peacock - Three Extracts on Public Finance A.Wagner - Contribution to the Theory of the Distribution of Public Expenditure M.Pantaleoni - On Taxation L.Von Stein - The Formation of the Prices of Public Goods U.Mazzola - On Progressive Taxation A.J.Cohen Stuart - A New Principle of Just Taxation K.Wicksell - The Pure Theory of Taxation F.Y.Edgeworth - The Fundamental Principles of a Pure Theory of Public Finance G.Montemartini - On Taxation in General P.Leroy-Beaulieu - On Public Needs E.Barone - Just Taxation: A Positive Solution E.Lindahl - The Valuation Theory of Taxation E.Sax - A Theory of the Public Economy F.Von Wieser - A Sociological Approach to Problems of Public Finance R.Goldscheid - Some Controversial Questions in the Theory of Taxation E.Lindahl - Communal Economy and Market Economy H.Ritschl - Index

The Economic Theory of Fiscal Policy.

PART I 1. Ends and Means in Economic Policy 2. The Means of Fiscal Policy 3. The Balance of the Budget 4. Economic Fluctuations and the Budget 5. On Incidence 6. A Classification of the Means of Fiscal Policy PART II 7. Planning by Households 8. The Effects of Taxation on the Consumption and Saving Plans of Households 9. Further Observations on Fiscal Policy and Household Planning 10. The Importance of Fiscal Policy for Planning by Firms 11. Organization and Fiscal Policy PART III 12. Stable Value of Money and Full Employment 13. Neutral Fiscal Policy 14. Direct versus Indirect Taxation 15. Fiscal policy and Internal Disturbances 16. Long-Term Problems of Fiscal Policy 17. Fiscal Policy and Wage Policy 18. Views on Fiscal Policy and Foreign Trade Full Employment and a Stable Value of Money in a World of Uncertainty

An Expenditure Tax.

PART ONE: THE ISSUE IN PRINCIPLEI Income, Expenditure And Taxable CapacityAppendix to Chapter IThe Concept of Income In Economic TheoryII Taxation And SavingsIII Taxation And Risk-BearingIV Taxation and Incentive To WorkV Company TaxationVI Taxation and Economic ProgressPART TWO: THE ISSUE IN PRACTICEVII Is A Personal Expenditure Tax Practicable?VIII A Proposal for Surtax Reform