Taxation and Employment: OECD Tax Policy Studies

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Language: English

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As John Kenneth Galbraith pointed out in his 1958 book The Affluent Society, “… inequality has ceased to preoccupy men’s minds.” Enlarging the pie, the thinking went, meant everyone would get a bigger piece. A reduction in direct taxation increases consumers' disposable income and should boost household spending. For individuals and households, unemployment forces them to curtail their consumption drastically and perhaps liquidate some of the assets – often at a loss – to meet financial obligations.

Pages: 154

Publisher: OECD (March 9, 2012)

ISBN: 9264120599

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