Law Commons^™

Little Boxes: Can Optimal Commodity Tax Methodology Save The Debt-Equity Distinction?, Herwig J. Schlunk

Vanderbilt Law School Faculty Publications

Optimal commodity tax methodology has been proposed as a way of making difficult line drawing decisions in the income tax. This paper explores some practical difficulties with the approach, and concludes that in one area - the debt-equity divide - the approach is unlikely to prove useful over any significant time horizon.