Article

Should we ax the capital gains tax?

February 1995

Source
RePEc

Authors:

ResearchGate has not been able to resolve any citations for this publication.

ResearchGate has not been able to resolve any references for this publication.

Article

Analysis of the tax system of china by means of computable general equilibrium model

January 2013 · World Applied Sciences Journal

N.V. Kuznetsova

This work analyzes CGE model for the analysis of the impact of changes caused by the tax policy in China. A model that demonstrates the effectiveness of the tax system applied in China is developed. It is proved that the municipal economies are experiencing greater tax burden than rural economies, and that the capital is experiencing the largest tax burden which means a decrease in the income of ... [Show full abstract] the households. Consequently, the tax burden is shifted to the households. It is argued that the income tax system and factors of the taxes are the most suitable for the Chinese economy.

Article

Planning and land taxation: development land tax and beyond - II.

January 1986

M. Grant

Estimates the net yield of the tax, perhaps around #50 million in 1984-85, and then proceeds to analyse the impact of the tax on planning. Argues that the tax increased the use of Section 52 type bargaining. Speculates on the role that Capital Gains Tax will play in planning, which though far from easy to predict could be an increase in development activity.-A.W.Gilg

Article

Full-text available

Alternative Approaches to Taxing the Financial Sector: Wich is Best and Where Does Chile Stand?

January 2011

Patrick Honohan

In contrast to the enthusiasm of some observers for sweeping reforms to financial sector taxation (such as abolishing taxation of capital income or introducing a universal transactions tax), this paper argues that practical policy needs to pay special attention to the potential for tax arbitrage, and to avoiding a system that is too sensitive to inflation. A review of the main features of Chile's ... [Show full abstract] financial sector taxation regime (in particular the stamp taxes on checks and on loans) against this background shows some strengths, though the rates are somewhat higher than would result from a VAT applied systematically to financial services at the standard rate.

View full-text

Article

Dynamic and Distributional Effects of Environmental Revenue Recycling Schemes: Simulations with a Ge...

August 2002 · SSRN Electronic Journal

This paper can be downloaded without charge at: The Fondazione Eni Enrico Mattei Note di Lavoro Series Index: http://www. feem. it/web/activ/ activ. html Social Science Research Network Electronic Paper Collection: http://papers' ssm'cm/abstract=-XXXXXX The opinions expressed in this paper do not necessarily reflect the position of Dynamic and Distributional Effects of Environmental Revenue ... [Show full abstract] Recycling Schemes: Summary A dynamic general equilibrium model of the Italian economy is used to assess the impact of carbon taxation (or auctioned carbon permits), where additional revenue is used to cut either existing taxes on labour or on capital income. Simulation results do not support the existence of the so-called "double dividend" when labour taxes are reduced, whereas lower tax rates on capital have mild positive effects on growth and welfare, with progressivity properties on income distribution. These findings hinge on the assumptions of open economy, given world interest rate, and capital mobility

Article

Optimal design of forest and capital income taxation in an economy with an Austrian sector

January 1997 · Journal of Forest Economics

This paper develops an intertemporal harvesting model under future timber price risk to re-examine the optimal design afforest and capital income taxes in an economy with an Austrian sector. The previous literature sought a tax structure which would give a neutral tax system in the sense of yielding the same discounted net return from investment in both sectors. While tax neutrality is a ... [Show full abstract] desirable goal in the first-best situation where government does not face budget constraint, the situation may change in the second-best case when the government tax revenue requirement is taken into account. This paper shows that both introducing uncertainty and allowing for the government tax revenue requirement in the expected value sense changes the results from the optimal design of tax structure. Given a (non-distortionary) site productivity tax it is generally desirable to use both the yield tax on harvesting and the capital income subsidy or tax. The level of the yield tax reflects a trade-off between its social insurance and distortionary properties. Under these circumstances the task of the capital income tax is to alleviate distortion created by the yield tax. This can be done by a capital income subsidy (tax) when the substitution effect of the yield tax is negative (positive) and current harvesting is too small (too large) from the viewpoint of society.

Article

Expenditure competition and a soft budget constraint

January 2007 · Ekonomický C̆asopis

Anton Jevcak

This paper offers a two-period small open economy model with publicly provided production inputs. The model confirms that if government's and consumers' relative preferencesfor second period utility coincide, while at the same time the public cost of borrowing and the consumers' return on saving are identical, lump-sum taxation and public debt are equivalent methods of financing public input ... [Show full abstract] provision. However, if the public cost of borrowing and the consumers' return on saving do not match, debt financing similarly as capital taxation can depending on circumstances lead to under- or over-provision of public inputs in a small open economy. Furthermore, if the government cannot ex ante commit to a certain expenditure level, the difference between the government's and consumers' discount rate can also result into under- or over-provision of public inputs.

Article

Full-text available

Issues in the Measurement and Interpretation of Effective Tax Rates

January 1987 · National Tax Journal

Marginal effective tax rates on investment that are derived from the user cost of capital are nowadays widely used practically to assess the effects of capital taxation. In this paper, we examine several troublesome issues in the construction and use of marginal effective tax rates and user costs of capital. Our connnents fall into two classes. In the first are concerns about the adequacy of the ... [Show full abstract] current generation of models of capital-market equilibrium, into which marginal effective tax rates (user costs) are incorporated. In the second are concerns about the appropriateness of the assumption, implicit and nearly universal in marginal effective tax rate calculations, that investors expect a given tax code to remain unchanged forever. We show that effects of current changes in the law on expectations about future changes may undo or even reverse the effects predicted by traditionally calculated effective tax rates.

View full-text

Article

Full-text available

La Concurrencia y Articulación del Impuesto Sobre el Incremento de Valor de los Terrenos de Naturale...

September 2008

Fernando de Vicente

El IIVTNU ha recibido y sigue recibiendo muchas críticas por su concurrencia con los distintos tributos que gravan las plusvalías, así como por el actual sistema de cálculo de las citadas plusvalías, que lo aleja del principio de capacidad económica. Muchos autores han propuesto su supresión además de otras muchas variadas y creativas soluciones. El legislador no sólo no las ha atendido sino que ... [Show full abstract] además ha empeorado la situación. The IIVTNU has received and continues receiving much criticism for its concurrence with the various taxes levied on capital gains as well as the current system of calculation of those gains, which moves away from the principle of economic capacity. Many authors have proposed its disappearance as well as many varied and creative solutions. The legislator has not only not attended them but also has worsened the situation.

View full-text

Article

The Character and Determinants of Corporate Capital Gains

January 2003 · SSRN Electronic Journal

This paper analyzes how corporate capital gains taxes affect the capital gain realization decisions of firms. The paper outlines the tax treatment of corporate capital gains, the consequent incentives for firms with gains and losses, the efficiency consequences of these taxes in the context of other taxes and capital market distortions, and the response of firms to these incentives. Despite ... [Show full abstract] receiving limited attention, corporate capital gain realizations have averaged 30 percent of individual capital gain realizations over the last fifty years and have increased dramatically in importance over the last decade. By 1999, the ratio of net long-term capital gains to income subject to tax was 21 percent and was distributed across a variety of industries suggesting the importance of realization behavior to corporate financing decisions. Time-series analysis of aggregate realization behavior demonstrates that corporate capital gains taxes impact realization behavior significantly. Similarly, an analysis of firm-level investment and property, plant, and equipment (PPE) disposal decisions and gain recognition behavior similarly suggests an important role for these taxes in determining when firms raise money by disposing of assets and realizing gains.

Article

The Importance of Asymmetric Tax Policy and Dangers of Aggregation

August 2011 · Journal of Money Credit and Banking

Kenneth Judd

Existing tax policies have many complex features that make distinctions across goods, factors, and financial structures that distort economic allocations. Their importance is ignored when tax policy is summarized by an “effective” tax rate. In fact, the losses due to asymmetries are often larger than the losses due to the level of taxation.

Article

Full-text available

Property taxation, property base, and property value: An empirical test of the “New View

June 1993 · National Tax Journal

Robert W. Wassmer

The "Traditional," "New," and "Benefit" Views of property taxation yield different predictions in regard to the ef- fects of property taxation, An empirical test for evidence on the predicted effects of the New View is given. Results support the New View and indicate that ( '7) the greater the positive differential between a city's rate of property taxation and the nation's average rate, the ... [Show full abstract] smaller the amount of capital in the city and the smaller the per-unit market value of its property tax base; and (2) the higher the average rate of property taxation in the country, the lower the return to all prop- erty. Simulations regarding revenue alter- natives vided. to the PweQ tax are a/so pro-

View full-text

Article

Top Incomes and the Gender Divide

January 2016 · SSRN Electronic Journal

In the recent research on top incomes, there has been little discussion of gender. How many of the top 1 and 10 per cent are women? A great deal is known about gender differentials in earnings, but how far does this carry over to the distribution of total incomes, bringing selfemployment and capital income into the picture? We investigate the gender divide at the top of the income distribution ... [Show full abstract] using tax record data for a sample of eight countries with individual taxation. We show that women are under-represented at the top of the distribution. They account for between a fifth and a third of those in the top 10 per cent. Higher up the income distribution, the proportion is lower, with women constituting between 14 and 22 per cent of the top 1 per cent. The presence of women in the top income groups has generally increased over time, but the rise becomes smaller at the very top. As a result, the gradient with income has become more marked: the under-representation of women today increases more sharply. Examination of the shape of the income distribution by fitting a Pareto distribution shows that at the end of the period women disappear faster than men as one moves up the income scale in all countries. In this sense, there appears to be something of a “glass ceiling” for women. In the case of Canada, Denmark, Norway and New Zealand, there appears to have been a reversal over time, with the slope of the upper tail having been steeper for women in the past. In seeking to explain this, we highlight the role of income composition, where we show that there have been significant changes over time, underlining the fact that it is not sufficient to look only at earned income.

Should we ax the capital gains tax?

No full-text available

Recommended publications

Analysis of the tax system of china by means of computable general equilibrium model

Planning and land taxation: development land tax and beyond - II.

Alternative Approaches to Taxing the Financial Sector: Wich is Best and Where Does Chile Stand?

Dynamic and Distributional Effects of Environmental Revenue Recycling Schemes: Simulations with a Ge...

Optimal design of forest and capital income taxation in an economy with an Austrian sector

Expenditure competition and a soft budget constraint

Issues in the Measurement and Interpretation of Effective Tax Rates

La Concurrencia y Articulación del Impuesto Sobre el Incremento de Valor de los Terrenos de Naturale...

The Character and Determinants of Corporate Capital Gains

The Importance of Asymmetric Tax Policy and Dangers of Aggregation

Property taxation, property base, and property value: An empirical test of the “New View

Top Incomes and the Gender Divide