Reimagining capital income taxation


This paper is an exercise in the design of tax institutions — in particular, a comprehensive regime for the taxation of capital income, in all its many guises. The paper is mindful of the recommendations of public finance theory, but its contributions lie in the domain of tax engineering, not physics. The paper serves as a comprehensive reformulation and reimplementation of the “Business Enterprise Income Tax” and “Cost of Capital Allowance” ideas first presented in Kleinbard (2007a, 2007b and 2010), and whose embryonic form dates back to Kleinbard (1989), in light of experience gained since those earlier efforts.


Edward D. Kleinbard