78. Life-cycle Saving Taxation
Essay, Finance and Accounting
Word count: maximum 2,000 words (not including bibliography)
Due date for submitting hardcopy and for submitting a copy via Turnitin:15 March 2014
1. Read chapter13entitled ‘The Taxation of Household Savings’ (pp. 283 – 317)from the second volume of the Mirrlees review. A copy of the second volume can be found on Blackboard in the ‘Assignments’ folder.
A full copy of the report (volumes one and two) can be found by following the link below, but this is for information only and you are not required to read both volumes for the purposes of the assignment:
2. Evaluate the recommendation to provide a tax system with a neutral treatment of life-cycle savings for the vast majority of taxpayers (as described in chapter 13). Your evaluation should include:
a) A description of the current system (taxation of household savings in general);
b) a description of the proposed recommendations;
c) the purpose for providing a tax system with a neutral treatment of life-cycle savings for the vast majority of taxpayers.
d) your opinion on the strengths and weaknesses of the proposals; and
e) a description and explanation of the type of potential winners and losers of such a move (certain groups of individuals and organisations).
Additional marks will be provided for:
i. Strength of your evaluation;
ii. other relevant points made by you as part of your evaluation; PTO
iii. inclusion of relevant theories and concepts to support your work; and
iv. use of referencing to other academic research relevant to this particular topic.