The British property tax, or rates, is a major tax about whose economic effects little is known. The bulk of the theoretical and empirical analysis of the tax has been done in North America and is wholly within the neoclassical paradigm of tax incidence. The restrictive assumptions and partial equilibrium nature of the neoclassical approach limit its usefulness. In this paper the author shows how the short-period incidence of the property tax can be incorporated within a post-Keynesian model of tax incidence developed by Asimakopulos and Burbidge out of original ideas of Kalecki's. The results obtained from this post-Keynesian approach are compared with the neoclassical results. It is concluded that the post-Keynesian approach offers a more truly general equilibrium and logically coherent framework for the analysis of property tax incidence.
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