The incidence of local business rates on household incomes in the United Kingdom is examined by means of Input–Output Tables. Full forward shifting into prices is assumed and local rates are treated as an indirect tax on intermediate goods and services. Input–Output Tables and Family Expenditure Survey data for 1979 are used to identify the incidence of business rates by category of expenditure and household type. The analysis reveals that business rates are markedly regressive.
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References
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BahlR WShellhammerK L, 1969, “Evaluating the state business tax structure: An application of input–output analysis”National Tax Journal22203–216
2.
Board of Inland Revenue, 1980Inland Revenue Statistics, 1980 (HMSO, London)
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BSO, 1982Business Monitor PA 1002 Summary tables, 1979, Business Statistics Office (HMSO, London)
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BSO, 1983Business Monitor PA 1004 Input–Output Tables for the United Kingdom 1979, Business Statistics Office (HMSO, London)
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CSO, 1979National Income and Expenditure, 1979 Central Statistical Office (HMSO, London)
