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Author: Sagiri Kitao
Publisher:
ISBN:
Category :
Languages : en
Pages : 28
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Book Description
This paper uses a life-cycle model of heterogeneous agents to study a capital income tax that rewards hard work. We propose a simple mechanism of capital taxation which is negatively correlated with labor supply. It provides a strong work incentive when households possess large assets and high productivity later in the life-cycle, when they otherwise would reduce labor supply. With the ex-post higher after-tax return from assets, the system also adds to the saving motive and all the aggregate variables including capital, labor and consumption will rise. The higher capital-labor ratio increases the wage rate, which benefits households with fewer assets. The increased economic activities expands the tax base and the revenue neutral reform results in the lower average tax rate. The system improves long-run welfare and the majority of current generations would support a transition to the reformed system.
Author: Sagiri Kitao
Publisher:
ISBN:
Category :
Languages : en
Pages : 28
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Book Description
This paper uses a life-cycle model of heterogeneous agents to study a capital income tax that rewards hard work. We propose a simple mechanism of capital taxation which is negatively correlated with labor supply. It provides a strong work incentive when households possess large assets and high productivity later in the life-cycle, when they otherwise would reduce labor supply. With the ex-post higher after-tax return from assets, the system also adds to the saving motive and all the aggregate variables including capital, labor and consumption will rise. The higher capital-labor ratio increases the wage rate, which benefits households with fewer assets. The increased economic activities expands the tax base and the revenue neutral reform results in the lower average tax rate. The system improves long-run welfare and the majority of current generations would support a transition to the reformed system.
Author: Jane Gravelle
Publisher: MIT Press
ISBN: 9780262071581
Category : Business & Economics
Languages : en
Pages : 370
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Book Description
How should capital income be taxed to achieve efficiency and equity? In this detailed study, tax policy analyst Jane Gravelle, brings together comprehensive estimates of effective tax rates on a wide variety of capital by type, industry, legal form, method of financing, and across time. These estimates are combined with a history and survey of issues regarding capital income taxation that are aimed especially at bringing the findings of economic theory and recent empirical research to nonspecialists and policymakers. Many of the topics treated have been the subject of policy debate and legislation over the last ten or fifteen years.Should capital income be taxed at all? And, if capital income is to be taxed, what is the best way to do it? Gravelle devotes two chapters to the first question, and then, in answer to the second question, covers a broad range of topics - corporate taxation, tax neutrality, capital gains taxes, tax treatment of retirement savings, and capital income taxation and international competitiveness. Gravelle also includes a comprehensive history of tax institutions and data on constructing effective tax rates that are not available elsewhere.
Author: Horst Siebert
Publisher: Routledge
ISBN: 1000309363
Category : Political Science
Languages : en
Pages : 281
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Book Description
This book surveys the theoretical issues that characterize the problem of reforming capital income taxes in an open economy. It explores the tax incentives and disincentives to investment in an open economy framework allowing cross-border portfolio and direct investment.
Author: Arnold C. Harberger
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 372
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Book Description
Compilation of papers on problems of income taxation and the effects thereof on capital gains in the USA - covers economic implications, legal aspects of the tax system, fiscal policy, long term pattern of financing of enterprises, the effects of income taxation on labour force supply, etc., and includes statistical tables and information on personal income and investment. References.
Author: Alan J. Auerbach
Publisher: Harvard University Press
ISBN: 9780674868458
Category : Business & Economics
Languages : en
Pages : 142
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Book Description
This important contribution to tax analysis presents seven related theoretical essays that examine the effects of capital income taxation on the behavior of firms. It is divided into three sections, focusing on optimal tax design, firm financial policy, and inflation. Taken together, the essays demonstrate the powerful role taxes play in shaping the behavior of American corporations, and also provide insights into the difficult task of tax reform. Auerbach's results suggest policies the government might adopt to promote the optimal accumulation of capital. He examines the implications for capital taxation of discrepancies between nominal depreciation rates and real economic depreciation, and suggests appropriate rules of thumb for determining when capital taxation is neutral among alternative investment projects. He also makes important contributions to the debate over the integration of corporate and personal taxes on capital income and to the behavioral puzzle of why corporations pay dividends to their shareholders.
Author: Kaye A. Thomas
Publisher: Fairmark Press Inc.
ISBN: 0967498112
Category : Business & Economics
Languages : en
Pages : 322
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Book Description
A complete, authoritative guide to taxation of stocks, mutual funds and market-traded stock options.
Author: Henry J. Aaron
Publisher: The Urban Insitute
ISBN: 9780877667377
Category : Business & Economics
Languages : en
Pages : 372
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Book Description
The question of whether to tax income from wealth has sparked debate since our country's inception. Does taxing capital income ensure the progressivity of our system or merely discourage saving? Would switching our tax code to one that taxes only consumption be more efficient or only burden middle- and low-income people? And if we were to radically reform the way America taxes its citizens, how could we ensure that vital revenue would not be lost? Some analysts would even argue that, under our present byzantine tax system, we don't really tax capital income at all. In this volume, eminent economists analyze the problems associated with taxing capital income and propose policy solutions, which are then challenged by their peers in informed commentary. It may not settle the debate, but policymakers, scholars, and the public will find a wealth of information and ideas to consider.
Author: Martin Feldstein
Publisher: University of Chicago Press
ISBN: 0226241858
Category : Business & Economics
Languages : en
Pages : 134
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Book Description
Economists have long recognized the importance of capital accumulation for productivity and economic growth. The National Bureau of Economic Research is currently engaged in a study of the relationship between such accumulation and taxation policies, with particular focus on saving, risk-taking, and corporate investment in the United States and abroad. The papers presented in Taxes and Capital Formation are accessible, nontechnical summaries of fourteen individual research projects within that study. Complete technical reports on this research are published in a separate volume, The Effects of Taxation on Capital Accumulation, also edited by Martin Feldstein. By addressing some of the most critical policy issues of the day with a minimum of economic jargon, Taxes and Capital Formation makes the results of Bureau research available to a wide audience of policy officials and staff as well as to members of the business community. The volume should also prove useful for courses in public policy, business, and law. In keeping with Bureau tradition, the papers do not contain policy recommendations; instead, they promote a better understanding of how the economy works and the effects of specific policies on particular aspects of the economy.
Author: Barry P. Bosworth
Publisher: Brookings Institution Press
ISBN: 0815719574
Category : Business & Economics
Languages : en
Pages : 221
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Book Description
The sharp decline in U.S. productivity growth in the 1970s has brought about a renewed interest in economic policies to expand aggregate supply. Particular importance has been given to the role played by government intervention in the form of taxes, transfer payments, and regulation. This volume asks just what is known about the effect of government policy on the productive capacity of the nation. It also looks at the role played by capital formation, technological change, and the quality of the work force.
Author: Ms.Dora Benedek
Publisher: International Monetary Fund
ISBN: 1484302559
Category : Business & Economics
Languages : en
Pages : 32
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Book Description
Some countries support smaller firms through tax incentives in an effort to stimulate job creation and startups, or alleviate specific distortions, such as financial constraints or high regulatory or tax compliance costs. In addition to fiscal costs, tax incentives that discriminate by firm size without specifically targeting R&D investment can create disincentives for firms to invest and grow, negatively affecting firm productivity and growth. This paper analyzes the relationship between size-related corporate income tax incentives and firm productivity and growth, controlling for other policy and firm-level factors, including product market regulation, financial constraints and innovation. Using firm level data from four European economies over 2001–13, we find evidence that size-related tax incentives that do not specifically target R&D investment can weigh on firm productivity and growth. These results suggest that when designing size-based tax incentives, it is important to address their potential disincentive effects, including by making them temporary and targeting young and innovative firms, and R&D investment explicitly.
