Author: Patric H. Hendershott
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 58
Book Description
This paper develops and employs a five-asset, four-household and single-business sector simulation model to measure the long-run impacts of the major provisions of the Economic Recovery Tax Act of 1981 on the allocation of a fixed capital stock among owner-occupied housing, rental housing, and nonresidential capital. The specific provisions analyzed are the increases in tax depreciation for nonresidential capital and rental housing and the reduction in the maximum tax rate on unearned income. Our analysis suggests a 6 percent increase in nonresidential capital, an 11 percent decline in owner-occupied housing and little change in rental housing (the increase in the number of renters -- the homeownership rate declines by 1 1/2 percentage points -- offsets a decline in the quantity of rental services demanded per renter). In the absence of an increase in aggregate saving, real pretax interest rates rise by nearly two percentage points. Corporate profit taxes decline by 60 percent, and after-tax earnings rise by 25 percent. As a result of the Act, the net (of depreciation) user costs for the three types of capital will almost be equalized.
The Impacts on Capital Allocation of Some Aspects of the Economic Recovery Tax Act of 1981
Author: Patric H. Hendershott
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 58
Book Description
This paper develops and employs a five-asset, four-household and single-business sector simulation model to measure the long-run impacts of the major provisions of the Economic Recovery Tax Act of 1981 on the allocation of a fixed capital stock among owner-occupied housing, rental housing, and nonresidential capital. The specific provisions analyzed are the increases in tax depreciation for nonresidential capital and rental housing and the reduction in the maximum tax rate on unearned income. Our analysis suggests a 6 percent increase in nonresidential capital, an 11 percent decline in owner-occupied housing and little change in rental housing (the increase in the number of renters -- the homeownership rate declines by 1 1/2 percentage points -- offsets a decline in the quantity of rental services demanded per renter). In the absence of an increase in aggregate saving, real pretax interest rates rise by nearly two percentage points. Corporate profit taxes decline by 60 percent, and after-tax earnings rise by 25 percent. As a result of the Act, the net (of depreciation) user costs for the three types of capital will almost be equalized.
Publisher:
ISBN:
Category : Housing
Languages : en
Pages : 58
Book Description
This paper develops and employs a five-asset, four-household and single-business sector simulation model to measure the long-run impacts of the major provisions of the Economic Recovery Tax Act of 1981 on the allocation of a fixed capital stock among owner-occupied housing, rental housing, and nonresidential capital. The specific provisions analyzed are the increases in tax depreciation for nonresidential capital and rental housing and the reduction in the maximum tax rate on unearned income. Our analysis suggests a 6 percent increase in nonresidential capital, an 11 percent decline in owner-occupied housing and little change in rental housing (the increase in the number of renters -- the homeownership rate declines by 1 1/2 percentage points -- offsets a decline in the quantity of rental services demanded per renter). In the absence of an increase in aggregate saving, real pretax interest rates rise by nearly two percentage points. Corporate profit taxes decline by 60 percent, and after-tax earnings rise by 25 percent. As a result of the Act, the net (of depreciation) user costs for the three types of capital will almost be equalized.
Long Run Effects of the Accelerated Cost Recovery System
Author: Don Fullerton
Publisher:
ISBN:
Category : Depreciation allowances
Languages : en
Pages : 30
Book Description
Publisher:
ISBN:
Category : Depreciation allowances
Languages : en
Pages : 30
Book Description
The Economic Recovery Tax Act of 1981 as it Affects Real Estate Owners
Author: Robert Frank Elliott
Publisher:
ISBN:
Category : Real property and taxation
Languages : en
Pages : 62
Book Description
Publisher:
ISBN:
Category : Real property and taxation
Languages : en
Pages : 62
Book Description
The Effects of Taxation on Capital Accumulation
Author: Martin Feldstein
Publisher: University of Chicago Press
ISBN: 0226241785
Category : Business & Economics
Languages : en
Pages : 501
Book Description
Research on capital formation has long been a major focus of studies sponsored by the National Bureau of Economic Research because of the crucial role of capital accumulation in the process of economic growth. The papers in this volume examine the influence of taxes on capital formation, with specific focus on the determinants of saving and the process of investment in plant and equipment.
Publisher: University of Chicago Press
ISBN: 0226241785
Category : Business & Economics
Languages : en
Pages : 501
Book Description
Research on capital formation has long been a major focus of studies sponsored by the National Bureau of Economic Research because of the crucial role of capital accumulation in the process of economic growth. The papers in this volume examine the influence of taxes on capital formation, with specific focus on the determinants of saving and the process of investment in plant and equipment.
The Effects of the Economic Recovery Tax Act of 1981 on Capital Formation
Author: David Julian Karachuk
Publisher:
ISBN:
Category : Taxation
Languages : en
Pages : 220
Book Description
Publisher:
ISBN:
Category : Taxation
Languages : en
Pages : 220
Book Description
Analysis of the Economic Recovery Tax Act of 1981, Enacted August 13, 1981
Author: Ernest D. Fiore
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 464
Book Description
The book reports and analyses the provisions of the Economic Recovery Act of 1981 and relates consequences for individual and corporate taxpayers.
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 464
Book Description
The book reports and analyses the provisions of the Economic Recovery Act of 1981 and relates consequences for individual and corporate taxpayers.
The Reagan Experiment
Author: John Logan Palmer
Publisher: The Urban Insitute
ISBN: 9780877663157
Category : Business & Economics
Languages : en
Pages : 552
Book Description
"A report of the Urban Institute's Changing Domestic Priorities Project"--Page ii."URI 34200"--T.p. verso. Includes bibliographical references.
Publisher: The Urban Insitute
ISBN: 9780877663157
Category : Business & Economics
Languages : en
Pages : 552
Book Description
"A report of the Urban Institute's Changing Domestic Priorities Project"--Page ii."URI 34200"--T.p. verso. Includes bibliographical references.
Corporate Capital Structures in the United States
Author: Benjamin M. Friedman
Publisher: University of Chicago Press
ISBN: 0226264238
Category : Business & Economics
Languages : en
Pages : 404
Book Description
The research reported in this volume represents the second stage of a wide-ranging National Bureau of Economic Research effort to investigate "The Changing Role of Debt and Equity in Financing U.S. Capital Formation." The first group of studies sponsored under this project, which have been published individually and summarized in a 1982 volume bearing the same title (Friedman 1982), addressed several key issues relevant to corporate sector behavior along with such other aspects of the evolving financial underpinnings of U.S. capital formation as household saving incentives, international capital flows, and government debt management. In the project's second series of studies, presented at the National Bureau of Economic Research conference in January 1983 and published here for the first time along with commentaries from that conference, the central focus is the financial side of capital formation undertaken by the U.S. corporate business sector. At the same time, because corporations' securities must be held, a parallel focus is on the behavior of the markets that price these claims.
Publisher: University of Chicago Press
ISBN: 0226264238
Category : Business & Economics
Languages : en
Pages : 404
Book Description
The research reported in this volume represents the second stage of a wide-ranging National Bureau of Economic Research effort to investigate "The Changing Role of Debt and Equity in Financing U.S. Capital Formation." The first group of studies sponsored under this project, which have been published individually and summarized in a 1982 volume bearing the same title (Friedman 1982), addressed several key issues relevant to corporate sector behavior along with such other aspects of the evolving financial underpinnings of U.S. capital formation as household saving incentives, international capital flows, and government debt management. In the project's second series of studies, presented at the National Bureau of Economic Research conference in January 1983 and published here for the first time along with commentaries from that conference, the central focus is the financial side of capital formation undertaken by the U.S. corporate business sector. At the same time, because corporations' securities must be held, a parallel focus is on the behavior of the markets that price these claims.
The Long-run Impact on Federal Tax Revenues and Capital Allocation of a Cut in the Capital Gains Tax Rate
Author: Patric H. Hendershott
Publisher:
ISBN:
Category : Capital gains tax
Languages : en
Pages : 52
Book Description
Model simulations are run to obtain a range of realistic estimates of the long-run revenue impact of a capital-gains tax-rate cut to a maximum of 15 percent. The basic vehicle for the simulations is a slightly modified version of the Galper-Lucice-Toder (GLT) general equilibrium model. The key behavioral assumptions affecting the estimates are: (1) the portfolio and tangible capital reallocations implicit in the structure of the GLT model, (2) corporate payouts responses based on recent empirical estimates, and (3) illustrative noncorporate recharacterizations of regular income as capital gains. The essential message of this paper is that the strong emphasis in the literation on the realization response to a capital gains tax rate cut has been appropriate. The payout/recharacterization and portfolio redistribution/reallocation effects do not appear to be large. Moreover, the portfolio responses, within the context of the GLT model, act to raise tax revenues (substitution of taxable business capital for tax free household and state and local capital), not lower them as has been conjectured. Thus these responses offset the payout/recharacterization effects, leaving the realization response as basically the total response. Future research could, of course, modify this finding.
Publisher:
ISBN:
Category : Capital gains tax
Languages : en
Pages : 52
Book Description
Model simulations are run to obtain a range of realistic estimates of the long-run revenue impact of a capital-gains tax-rate cut to a maximum of 15 percent. The basic vehicle for the simulations is a slightly modified version of the Galper-Lucice-Toder (GLT) general equilibrium model. The key behavioral assumptions affecting the estimates are: (1) the portfolio and tangible capital reallocations implicit in the structure of the GLT model, (2) corporate payouts responses based on recent empirical estimates, and (3) illustrative noncorporate recharacterizations of regular income as capital gains. The essential message of this paper is that the strong emphasis in the literation on the realization response to a capital gains tax rate cut has been appropriate. The payout/recharacterization and portfolio redistribution/reallocation effects do not appear to be large. Moreover, the portfolio responses, within the context of the GLT model, act to raise tax revenues (substitution of taxable business capital for tax free household and state and local capital), not lower them as has been conjectured. Thus these responses offset the payout/recharacterization effects, leaving the realization response as basically the total response. Future research could, of course, modify this finding.
Revising the Individual Income Tax
Author: Cynthia F. Gensheimer
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 172
Book Description
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 172
Book Description