Abstract
Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 437-440 |
| Number of pages | 4 |
| Journal | Australian Economic Review |
| Volume | 34 |
| Issue number | 4 |
| DOIs | |
| State | Published - Jan 1 2001 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Gambling taxation : A comment. / Paton, David; Siegel, Donald; Williams, Leighton Vaughan.
In: Australian Economic Review, Vol. 34, No. 4, 01.01.2001, p. 437-440.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Gambling taxation
T2 - A comment
AU - Paton, David
AU - Siegel, Donald
AU - Williams, Leighton Vaughan
PY - 2001/1/1
Y1 - 2001/1/1
N2 - Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.
AB - Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.
UR - http://www.scopus.com/inward/record.url?scp=0035657780&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0035657780&partnerID=8YFLogxK
U2 - 10.1111/1467-8462.00211
DO - 10.1111/1467-8462.00211
M3 - Article
AN - SCOPUS:0035657780
VL - 34
SP - 437
EP - 440
JO - Australian Economic Review
JF - Australian Economic Review
SN - 0004-9018
IS - 4
ER -