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This book offers an original and radical tax policy proposal which can be used to promote growth and stability without affecting income quality. Immediately following the publication of Keynes's "General Theory", Kalecki recognized that the theory of tax had to be re-thought, as aggregate income could no longer be thought of as fixed with respect to tax-induced changes in aggregate demand. To this day, orthodox tax policy continues to ignore aggregate demand effects. The authors consider this orthodox approach to be deficient, and show how tax policies can promote growth without having a negative impact on quality. They incorporate Kalecki's theory of tax incidence into an analysis of income determination, income distribution, investment, business cycles and growth. In addition, they examine the incidence of the corporate profits tax and the macroeconomic and regional incidence, and effects of local taxation. "A Dynamic Theory of Taxation" should be a welcome addition to the literture and should be of interest to tax policy analysts and government policy advisors, as well as scholars working in the fields of public finance, post-Keynesian and Kaleckian economics.