After reading this article you will learn about the arguments in favour and against capital levy. Arguments in Favour of Capital Levy: Usually the following arguments are put forward justifying capital levy: 1. During the war, the poor sections of the community suffer more in terms of risking their lives by joining the defence force and out of inflationary situation [...]
A controversy among economists relates to the question whether the borrowing method of financing shifts burden to future generations. The controversy gives rise to a far ranging debate over debt burden in 1930's and 1940's. One such heated debate was between the conservatives, who feared that the creation of debt in the course of deficit finance would burden the future. [...]
Prof. Evsey. D. Domer states that the burden of the debt or the average tax rate covering the interest charges, equals, roughly speaking, the ratio of the interest charges to income; or the ratio of the debt to income multiplied by the interest rate paid on bonds. It will be assumed that this interest rate is a given constant. Domer [...]