The incidence of domestic rates and alternative local taxes

<p>Domestic rates have long been one of the most unpopular taxes, partly-it seems-because they are levied directly on households rather than being collected by deductions at source from employment income or indirectly in the prices of consumption goods. As a result of this unpopularity, a variety of half-accurate or wholly misleading beliefs have become established concerning the incidence of domestic rates. My purpose in this paper is therefore to attempt to provide a more reliable empirical basis for an assessment of the merits or demerits of domestic rates when compared with alternative local taxes.</p>