ABSTRACT
The partial income tax may score a little better than the universal income tax under the equal treatment criterion, because it is less extensive and is thereby exposed to somewhat fewer occasions for discrepancies. Under a partial income tax the personal exemptions are so high that they outweigh the broader conceptual scope of the income tax base relative to that of the value-added tax. The degree of progression of the income tax depends in part on date of payment of tax, as distinguished from date of accrual of income, and the unit of time for which the progressive rate is defined. Economic growth is affected by the income tax, relative to the value-added tax, consumption type, because it drives a wedge, as the latter tax does not, between the rate of return earned by capital and the rate of return realized by the owner of the capital.
