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. The term can refer to desired shifts, such as towards Pigovian tax

Pigovian tax

A Pigovian tax is a tax levied on a market activity that generates negative externalities. The tax is intended to correct the market outcome. In the presence of negative externalities, the social cost of a market activity is not covered by the private cost of the activity...

es (typically sin tax

Sin tax

A sin tax is a kind of sumptuary tax: a tax specifically levied on certain generally socially proscribed goods and services. These goods are usually alcohol and tobacco, but also include candies, soft drinks, fat foods and coffee, while services range from prostitution to...

es and ecotax

Ecotax

Ecotax refers to taxes intended to promote ecologically sustainable activities via economic incentives. Such a policy can complement or avert the need for regulatory approaches. Often, an ecotax policy proposal may attempt to maintain overall tax revenue by proportionately reducing other taxes...

es) as well as (perceived or real) undesired shifts, such as a shift from multi-state corporations to small businesses and families.

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 Ecotax Ecotax refers to taxes intended to promote ecologically sustainable activities via economic incentives. Such a policy can complement or avert the need for regulatory approaches. Often, an ecotax policy proposal may attempt to maintain overall tax revenue by proportionately reducing other taxes... )	various	ecotax Ecotax Ecotax refers to taxes intended to promote ecologically sustainable activities via economic incentives. Such a policy can complement or avert the need for regulatory approaches. Often, an ecotax policy proposal may attempt to maintain overall tax revenue by proportionately reducing other taxes...	environment
Tax Shift for the Pacific Northwest (Durning & Bauman 1998)	personal, corporate income tax, payroll tax Payroll tax Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax , or pay-as-you-go tax... , property tax Property tax A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality... , sales tax Sales tax A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....	carbon tax, pollution tax, traffic tax, sprawl tax (Land value tax Land value tax A land value tax is a levy on the unimproved value of land. It is an ad valorem tax on land that disregards the value of buildings, personal property and other improvements... ), resource consumption tax	environment; public health; reduction of gridlock; countering speculation; equity; administrative ease
Property tax shift (PTS)	sales, income, and buildings	Land value tax Land value tax A land value tax is a levy on the unimproved value of land. It is an ad valorem tax on land that disregards the value of buildings, personal property and other improvements...	housing supply; sprawl; equity
Philadelphians for Land Value Tax Shift	tax rates on structures	land-value tax	economic development, countering speculation
Illinois	property tax	individual and corporate income tax
Mississippi Tennessee	Grocery or food tax	cigarette tax	public health; support for basic needs
Wyoming Tax Swap	sales tax, use tax, and business personal property tax	flat income tax
FairTax FairTax The FairTax is a tax reform proposal for the federal government of the United States that would replace all federal taxes on personal and corporate income with a single broad national consumption tax on retail sales. The Fair Tax Act would apply a tax once at the point of purchase on all new goods...	personal income tax, payroll tax Payroll tax Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax , or pay-as-you-go tax... , corporate tax Corporate tax Many countries impose corporate tax or company tax on the income or capital of some types of legal entities. A similar tax may be imposed at state or lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated as partnerships are generally not taxed at the... , capital gains tax Capital gains tax A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property... , self-employment Self-employment Self-employment is working for one's self.Self-employed people can also be referred to as a person who works for himself/herself instead of an employer, but drawing income from a trade or business that they operate personally....  tax, gift tax Gift tax A gift tax is a tax imposed on the gratuitous transfer of ownership of property. The United States Internal Revenue Service says a gift is "Any transfer to an individual, either directly or indirectly, where full consideration is not received in return."When a taxable gift in the form of cash,... , estate tax	national retail sales tax Sales tax A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale.... 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.

External links

• A Distributional Analysis of an Environmental Tax Shift
• Tax Cuts vs. Tax Shifts
• Making an Energy Tax Work for Business (in the UK)
• Sharing the Wealth (a web site opposing what they perceive as a tax shift)