Journal article


Tax Deductibility of Commuting Expenses and Leisure: On the Tax Treatment of Time-Saving Expenditure


Publication Details
Author(s): Wrede M
Journal: Finanzarchiv
Publisher: Mohr Siebeck
Publication year: 2000
Volume: 57
Pages range: 216-224
ISSN: 0015-2218
Language: English

Abstract

Assuming that higher traveling expenses reduce traveling time, this paper considers tax deductibility of commuting expenses when a distorting wage tax is levied. While the decision on commuting expenses would not be distorted if traveling costs were completely deductible, taxation would still not be neutral with respect to the leisure-consumption choice. Moreover, the paper shows that second-best optimum taxation requires less than complete deductibility of commuting expenses. Since commuting expenses are simply a special case of time-saving expenditure, this paper develops optimum taxation rules concerning the taxation of time-saving
expenditure.



Focus Area of Individual Faculties


How to cite
APA: Wrede, M. (2000). Tax Deductibility of Commuting Expenses and Leisure: On the Tax Treatment of Time-Saving Expenditure. Finanzarchiv, 57, 216-224. https://dx.doi.org/10.1628/0015221012904977

MLA: Wrede, Matthias. "Tax Deductibility of Commuting Expenses and Leisure: On the Tax Treatment of Time-Saving Expenditure." Finanzarchiv 57 (2000): 216-224.

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