Tax shift

Tax shift or Tax swap is a change in taxation that eliminates or reduces one or several taxes and establishes or increases others while keeping the overall revenue the same.[1] The term can refer to desired shifts, such as towards Pigovian taxes (typically sin taxes and ecotaxes) as well as (perceived or real) undesired shifts, such as a shift from multi-state corporations to small businesses and families.[2]

Proposed or introduced

The following table lists tax shifts that have been proposed or introduced:

Name, location, proponent, source From To Claimed benefits
Green tax shift (see ecotax) various ecotax environment
Tax Shift for the Pacific Northwest (Durning & Bauman 1998) personal, corporate income tax, payroll tax, property tax, sales tax carbon tax, pollution tax, traffic tax, sprawl tax (Land value tax), resource consumption tax environment; public health; reduction of gridlock; countering

speculation; equity; administrative ease

Property tax shift (PTS)[3] sales, income, and buildings Land value tax housing supply; sprawl; equity
Philadelphians for Land Value Tax Shift[4] tax rates on structures land-value tax economic development, countering speculation
Illinois[5] property tax individual and corporate income tax extra unearned income for landowners


Grocery or food tax cigarette tax public health; support for basic needs
Wyoming Tax Swap[9] sales tax, use tax, and business personal property tax flat income tax  
FairTax personal income tax, payroll tax, corporate tax, capital gains tax, self-employment tax, gift tax, estate tax national retail sales tax with rebate provide tax burden visibility; reduce compliance costs; global competitiveness

Other uses

Tax swap can also refer to the sale of a security that has declined in price since its purchase and the simultaneous purchase of a similar but not identical security, in order to realize a loss for tax purposes while maintaining a position.[10]

See also


  1. "Will Canadians support this kind of change?". Sustainable Prosperity FAQs. Sustainable Prosperity.
  2. Leachman, Michael (2006-04-14). "The Great Corporate Tax Shift: Undercutting Oregon's Economy and Quality of Life".
  3. Smith, Jeffery J.; Kris Nelson (December 1999). "Giving Life to the Property Tax Shift (PTS)". Redefining Progress.
  4. "Philadelphians for Land Value Tax Shift". Earth Rights Institute.
  5. Clements, Kate (2006-08-29). "Frerichs backs tax swap plan". The News-Gazette.
  6. "Title unknown". 2006-03-29.
  7. "Title unknown". 2006-10-18.
  8. "We did it! First-ever cut in state food tax passes!!!". Tennesseans for Fair Taxation. 2007-06-12.
  9. Glass, Brett. "The "Wyoming Tax Swap"".
  10. "tax swap Definition". InvestorWords. WebFinance, Inc.

External links

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