Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 10 Money and Prices in the Long Run
Chapter 30 of 36 Money Growth and Inflation
Section 24 of 28
…
Because of inflation-created tax increases on capital goods and interest income, higher inflation discourages people from saving.
The economy's savings provides the resources for investment which is a key factor of long-run economic growth.
When inflation raises the tax burden on saving, saving is discouraged and immediate consumption is encouraged.
This tends to depress the economy's long-run growth rate.
…
One solution to this problem is to index the tax system.
Tax laws can be written to adjust for the effects of inflation.
In the case of capital gains, the tax code can adjust the purchase price of the asset using a price index to assess the tax only on the real gain.
In the case of interest income the government can tax only real interest income
by excluding the portion of interest income created by inflation.
…
Tax laws have moved in the direction of indexation.
With these laws the income levels at which income tax rates change are adjusted automatically each year based on changes in the consumer price index.
More complete indexation is desirable, but it would further complicate the already complex tax code.
…
one solution to this problem
kono mondai ni hitotsu no kaiketsusaku
この問題に一つの解決策
Comments
Post a Comment