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Submitted by Jacqueline Coolidge on

I agree with most of this, but wonder about who would actually bear the incidence of a DBCFT. Given its similarities to a standard VAT, many fear that it would end up as just another regressive consumption tax, exacerbating the problems of inequality (inequality between individuals/households, not necessarily between nation states).

In this regard, I would note the comment above: "revenues have remained steady so far in developing countries and increased in advanced economies—perhaps because, for unrelated reasons, the share of capital in national income has increased..." How sure are we that the increased share of capital was "unrelated" to the shift in the tax burden from CIT to VAT and other consumption taxes? I thought Piketty made a pretty good case that tax reforms over the past several decades had plenty to do with it.