ABSTRACT
Kalecki’s (1990 [1937]a, pp. 319-325) article “A Theory of Commodity, Income, and Capital Taxation” is the starting point for the analysis of the effects of taxation in a Kaleckian model. A. Asimakopulos and John Burbidge (1974) extended Kalecki’s work on this topic.1 Kalecki’s particular focus was on the effects of taxation on wages and profits and on spending out of wages and profits to determine the ultimate effect of different types of taxes on national income and employment, as well as the ultimate incidence of these taxes. What follows here, taken mostly from Mott and Edward Slattery (1994b), is an extension of the Kaleckian approach to consider tax incidence and macroeconomic effects in cases in which certain taxes may result in changes in product prices as firms attempt to pass along taxes in the prices they charge.
