This course applies microeconomic analysis to the examination of the effects of recent tax changes around the world, of the present Australian tax system and of possible reform options. The course examines the policy issues involved in comprehensive changes to the tax system. It reviews the impact of taxes on the distribution of wealth (tax incidence) and on economic efficiency and discusses the efficiency/equity trade off. The course will consider how relatively neutral taxes on income and expenditure might be designed and examine the effects of departures from neutrality, including the tax preferred status of superannuation and housing. Emphasis will be placed on major Australian tax changes since the mid 1980s, such as the capital gains tax and full imputation reforms, effects of taxation on the pattern of savings and investment, and on tax reform options such as a GST. Other topics include tax shelters and international tax issues.

Assessment will be by means of a mid-semester examination and an end-of-semester examination.

Completion of or concurrent enrolment in ECON2101/2111 Microeconomics 2 (P or H).

See Course Website:  http://ecocomm.anu.edu.au/courses/course.asp?code=ECON2040

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=ECON2040