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Author: David Ingles Publisher: ISBN: Category : Languages : en Pages : 50
Book Description
This paper looks at issues with conventional approaches to capital income taxation, such as the income tax, the capital gains tax and the cash-flow consumption tax, and finds that there are difficulties with all of these. It proposes an alternative solution based on treating ordinary capital income in the same manner as capital gain, with tax deferral until drawdown. To achieve this it relies on a novel combination of two taxes, the pre-paid and the post-paid consumption tax, whereby tax levied under the latter takes account of tax previously paid under the former. In other words this 'Z-tax' is a modified form of cash flow consumption tax where much of the tax is payable up front. It potentially allows all capital income to be treated similarly, and allows excess returns - economic rents - to be taxed.
Author: David Ingles Publisher: ISBN: Category : Languages : en Pages : 50
Book Description
This paper looks at issues with conventional approaches to capital income taxation, such as the income tax, the capital gains tax and the cash-flow consumption tax, and finds that there are difficulties with all of these. It proposes an alternative solution based on treating ordinary capital income in the same manner as capital gain, with tax deferral until drawdown. To achieve this it relies on a novel combination of two taxes, the pre-paid and the post-paid consumption tax, whereby tax levied under the latter takes account of tax previously paid under the former. In other words this 'Z-tax' is a modified form of cash flow consumption tax where much of the tax is payable up front. It potentially allows all capital income to be treated similarly, and allows excess returns - economic rents - to be taxed.
Author: Jane Gravelle Publisher: MIT Press ISBN: 9780262071581 Category : Business & Economics Languages : en Pages : 370
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: Henry J. Aaron Publisher: The Urban Insitute ISBN: 9780877667377 Category : Business & Economics Languages : en Pages : 372
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 S. Feldstein Publisher: Harvard University Press ISBN: 9780674094826 Category : Business & Economics Languages : en Pages : 506
Book Description
Feldstein shows how systems of taxation influence the rate and nature of capital formation--key to the development of any economy. His identification of important economic and policy questions, adroit use of modeling and new data, and careful attention to dynamics make this book a powerful addition to the literature.
Author: Larry E. Jones Publisher: ISBN: Category : Capital gains tax Languages : en Pages : 56
Book Description
One of the best known results in modern public finance is the Chamley-Judd result showing that the optimal tax rate on capital income is zero in the long-run. In this paper, we reexamine this result by analyzing a series of generalizations of the Chamley-Judd formulation. We show that in a model with human capital, if the tax code is sufficiently rich and there are no pure profits from accumulating human capital, then all distorting taxes are zero in the long-run under the optimal plan. In this sense, income from physical capital is not special. To gain a better understanding of these two conditions, we study examples in which they are not satisfied and show that the optimal tax rate on income from physical capital does not go to zero. In those cases where the limiting tax rate is non-zero, we calculate its value for alternative specifications of the marginal welfare cost of taxation. Our results indicate that even for conservative specifications, tax rates of 10% and higher are possible under the optimal code.
Author: Jane G. Gravelle Publisher: Mit Press ISBN: 9780262525541 Category : Business & Economics Languages : en Pages : 358
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: Ruud A. de Mooij Publisher: International Monetary Fund ISBN: 1513511777 Category : Business & Economics Languages : en Pages : 388
Book Description
The book describes the difficulties of the current international corporate income tax system. It starts by describing its origins and how changes, such as the development of multinational enterprises and digitalization have created fundamental problems, not foreseen at its inception. These include tax competition—as governments try to attract tax bases through low tax rates or incentives, and profit shifting, as companies avoid tax by reporting profits in jurisdictions with lower tax rates. The book then discusses solutions, including both evolutionary changes to the current system and fundamental reform options. It covers both reform efforts already under way, for example under the Inclusive Framework at the OECD, and potential radical reform ideas developed by academics.
Author: Arnold C. Harberger Publisher: ISBN: Category : Business & Economics Languages : en Pages : 372
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: David Ingles
Author: David Ingles
Author: Jane Gravelle
Author: Henry J. Aaron
Author: Martin S. Feldstein
Author: Larry E. Jones
Author: Kaye A. Thomas
Author: Jane G. Gravelle
Author: Ruud A. de Mooij
Author: Arnold C. Harberger
Author: Fraser Institute (Vancouver, B.C.)