Tax Policy and the Principles Underlying a “Good Tax”

Abstract

A “good tax”—can there be such a thing? Kenneth Nichols explores the principles for evaluating the strengths and weaknesses of taxes on income, consumption, and wealth. Contrary to common argument, Nichols points out, there is no “best” tax, but there are five interrelated criteria for evaluating taxes that, collectively, may be used to assess whether tax reform efforts are moving us closer to or further away from a better overall tax system for Maine.