explicate link between: different savings norms, horizontal/vertical equity and (postpaid, progressive) consumption taxation

[maxheld83]

And the final example of an issue

• [ ] Values / Axiology: What is horizontal and/or vertical equity, and is that an appropriate standard of justice for taxation?
• [ ] Ontology / Beliefs: What is the nature and purpose of saving, and what are capital incomes?
  • e.g. Ordinary Savings Norm (OSN): people save to smooth consumption over their lives, capital incomes are compensation for risks (dying early, waiting, inflation, etc.)
  • e.g. "Yield to Capital Norm" (Y2C): when capital generates an income, that is proper income. People save to increase their consumption.
• [ ] Preferences / Taxes: What might positions on the above values and beliefs imply for choosing a tax base, especially income vs. prepaid, proportional consumption vs. postpaid, progressive consumption imply?

Literature

• McCaffery2005
• Murphy-Nagel-2002
• ...