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Peculiar institutions: A British perspective on tax policy in the United States Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Keen
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By both effect and example, tax policy in the United States has a huge impact on the rest of the world. This paper explores five features of the American tax system that seem, from a British and European perspective, to be both especially peculiar and potentially instructive. These are: the remarkably low overall level of taxation; the absence of a value added tax (or any other general national tax on consumption); the absence of any explicit interstate equalisation; the marginal subsidisation of low earnings under the Earned Income Tax Credit; and the fragmentation of power in policymaking, an important aspect of which is the role played by the Constitution.
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Article provided by Institute for Fiscal Studies in its journal Fiscal Studies .
Volume (Year): 18 (1997)
Issue (Month): 4 (November)
Pages: 371-400
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Handle: RePEc:ifs:fistud:v:18:y:1997:i:4:p:371-400Contact details of provider: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE Phone: (+44) 020 7291 4800 Fax: (+44) 020 7323 4780 Email: Web page: http://www.ifs.org.uk
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Find related papers by JEL classification: H10 - Public Economics - - Structure and Scope of Government - - - General H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General H50 - Public Economics - - National Government Expenditures and Related Policies - - - General H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
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