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This paper concentrates on cases where at the time of selecting a portfolio an investor has incomplete knowledge of the tax rates which will be effective in the future. This may be the situation in a parliamentary election year if rival parties are in favour of corporation income taxation and consumption taxation, respectively. In some countries uncertainty about tax rates may be a more permanent feature; for example, at all times there may be a non-zero probability of complete confiscation of investment profits. Under such circumstances the tax rate can appear as a random variable from an investor's point of view. In this way uncertainty about after-tax income can reflect uncertainty as to the tax rates which eventually will become effective--political risk--as well as uncertainty as to before-tax returns--commercial risk. [ABSTRACT FROM AUTHOR]

The article examines the impact of states' sales taxes in the U.S. The author reviews economic literature on expenditure taxation by economists such as Nicholas Kaldor, John Kenneth Galbraith, and Irving Fisher. He explores the meaning and purpose of the terms "regression" and "progression" as they refer to an analysis of expenditure taxes. The policy of excluding food from taxes is explored. The author also discusses liberal government policies, the redistribution of wealth in an affluent society, the Fisher concept of income, and consumption expenditures.

Discusses a conclusion that a consumption tax would provide a marginal incentive to export a different good than a production tax. Effect of commodity taxes on trade flows and measured factor endowments; Examination of a tax in supply of a factor that is variable in supply as a determinant of trade; Impact of trading patterns of a marginal change to tax policy.