Dale W. Jorgenson and Kun-Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.001.0001
- Subject:
- Economics and Finance, Public and Welfare
The concept of ‘cost of capital’ was introduced almost thirty years ago and quickly became an indispensable tool for modelling the impact of tax policy on investment behaviour. In the 1980s it ...
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The concept of ‘cost of capital’ was introduced almost thirty years ago and quickly became an indispensable tool for modelling the impact of tax policy on investment behaviour. In the 1980s it assumed a central role in tax reform debates through the closely related concept of the marginal effective tax rate. This book provides a comprehensive treatment of the cost of capital approach to tax policy analysis. In order to make the approach as accessible as possible, the analytical level of the book has been kept to an absolute minimum. The complexities are introduced in a step-by-step fashion, leading up to a representation of tax systems for capital income that is suitable for tax policy analysis. The success of the cost of capital approach is due in large part to its ability to assimilate a virtually unlimited amount of descriptive detail on alternative tax policies. In order to provide guidance to students and practitioners, the book contains a full implementation of the approach for the USA, including an analysis of the alternative proposals that culminated in the highly influential Tax Reform Act of 1986. The chapters of the book are the first in a series of Lectures in Monetary and Fiscal Policy given at Uppsala University in honour of Erik Lindahl, the Swedish economist who was a professor there from 1942 to 1958.Less
The concept of ‘cost of capital’ was introduced almost thirty years ago and quickly became an indispensable tool for modelling the impact of tax policy on investment behaviour. In the 1980s it assumed a central role in tax reform debates through the closely related concept of the marginal effective tax rate. This book provides a comprehensive treatment of the cost of capital approach to tax policy analysis. In order to make the approach as accessible as possible, the analytical level of the book has been kept to an absolute minimum. The complexities are introduced in a step-by-step fashion, leading up to a representation of tax systems for capital income that is suitable for tax policy analysis. The success of the cost of capital approach is due in large part to its ability to assimilate a virtually unlimited amount of descriptive detail on alternative tax policies. In order to provide guidance to students and practitioners, the book contains a full implementation of the approach for the USA, including an analysis of the alternative proposals that culminated in the highly influential Tax Reform Act of 1986. The chapters of the book are the first in a series of Lectures in Monetary and Fiscal Policy given at Uppsala University in honour of Erik Lindahl, the Swedish economist who was a professor there from 1942 to 1958.
Lane Kenworthy
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199550593
- eISBN:
- 9780191720727
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199550593.003.0008
- Subject:
- Political Science, Comparative Politics, Political Economy
Tax rates and tax structures differ markedly across the rich countries, and play a key role in reducing inequality but may also reduce employment. This chapter addresses the following questions: do ...
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Tax rates and tax structures differ markedly across the rich countries, and play a key role in reducing inequality but may also reduce employment. This chapter addresses the following questions: do taxes reduce inequality directly, or do they contribute to redistribution chiefly by providing the revenue for transfers? To what extent does globalization constrain governments' ability to maintain large and progressive tax systems? Have countries been moving toward more or less redistributive types of taxation? Do taxes in fact impede employment? The chapter argues that a tax policy conducive to low income inequality and high employment should have four principal features: taxes should generate a high level of revenues, in order to finance generous transfers and services; the tax system should be progressive, or at worst minimally regressive; payroll and consumption taxes should be moderate, so as not to impede employment growth in low-end services; and to encourage investment and entreneurship and prevent capital flight, there should be a relatively low statutory rate and a not-too-high effective tax rate on capital.Less
Tax rates and tax structures differ markedly across the rich countries, and play a key role in reducing inequality but may also reduce employment. This chapter addresses the following questions: do taxes reduce inequality directly, or do they contribute to redistribution chiefly by providing the revenue for transfers? To what extent does globalization constrain governments' ability to maintain large and progressive tax systems? Have countries been moving toward more or less redistributive types of taxation? Do taxes in fact impede employment? The chapter argues that a tax policy conducive to low income inequality and high employment should have four principal features: taxes should generate a high level of revenues, in order to finance generous transfers and services; the tax system should be progressive, or at worst minimally regressive; payroll and consumption taxes should be moderate, so as not to impede employment growth in low-end services; and to encourage investment and entreneurship and prevent capital flight, there should be a relatively low statutory rate and a not-too-high effective tax rate on capital.
Jude C. Hays
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195369335
- eISBN:
- 9780199871056
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195369335.003.0004
- Subject:
- Political Science, Political Economy
This chapter discusses the conventional wisdom about corporatism and capital taxation in political science. The chapter is organized into six sections. The first section reviews the debate over ...
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This chapter discusses the conventional wisdom about corporatism and capital taxation in political science. The chapter is organized into six sections. The first section reviews the debate over globalization and capital taxation, placing particular emphasis on the theoretical case against tax policy convergence. The second section builds a game-theoretic model of a small open-economy democracy that incorporates the distinction between consensus and majoritarian polities in order to theorize about how political institutions might mediate globalization pressures. The model predicts that globalization—specifically increased international capital mobility—will have the greatest negative impact on capital tax rates in relatively closed and capital-rich countries with majoritarian political institutions. This and related hypotheses are tested quantitatively with regression analysis in the third section. The chapter discusses possible causal mechanisms that link consensus democracy to low capital taxes in the fourth section. The fifth section explores the plausibility of various causal mechanisms through a comparative case study of capital taxation, focusing primarily on Britain and the Netherlands; and the sixth section concludes.Less
This chapter discusses the conventional wisdom about corporatism and capital taxation in political science. The chapter is organized into six sections. The first section reviews the debate over globalization and capital taxation, placing particular emphasis on the theoretical case against tax policy convergence. The second section builds a game-theoretic model of a small open-economy democracy that incorporates the distinction between consensus and majoritarian polities in order to theorize about how political institutions might mediate globalization pressures. The model predicts that globalization—specifically increased international capital mobility—will have the greatest negative impact on capital tax rates in relatively closed and capital-rich countries with majoritarian political institutions. This and related hypotheses are tested quantitatively with regression analysis in the third section. The chapter discusses possible causal mechanisms that link consensus democracy to low capital taxes in the fourth section. The fifth section explores the plausibility of various causal mechanisms through a comparative case study of capital taxation, focusing primarily on Britain and the Netherlands; and the sixth section concludes.
Robert T. Kudrle
- Published in print:
- 2010
- Published Online:
- September 2010
- ISBN:
- 9780199591145
- eISBN:
- 9780191594601
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199591145.003.0004
- Subject:
- Political Science, International Relations and Politics, Political Economy
Chapter 4 deals with tax policy in the OECD. Although the OECD has worked on many problems related to national fiscal systems, its achievements in sorting out international corporate tax ...
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Chapter 4 deals with tax policy in the OECD. Although the OECD has worked on many problems related to national fiscal systems, its achievements in sorting out international corporate tax practices are most well known. The model international corporate tax treaty, derived from US precedents and developed in the interwar period, has been continually refined to deal with difficult issues such as transfer pricing and electronic commerce. But corporate tax avoidance, particularly by US firms, has propelled a possible new approach — formula apportionment — that could test the OECD's capacity to find common ground for its members and other important states. Moreover, the OECD's recent confrontation with the tax havens suggests an ambivalent posture towards non‐members, even as some of them play an ever‐larger role in OECD deliberations. The chapter argues that the OECD now practices a kind of global governance in the taxation area, but its legitimacy and competence will be greatly challenged in the years ahead.Less
Chapter 4 deals with tax policy in the OECD. Although the OECD has worked on many problems related to national fiscal systems, its achievements in sorting out international corporate tax practices are most well known. The model international corporate tax treaty, derived from US precedents and developed in the interwar period, has been continually refined to deal with difficult issues such as transfer pricing and electronic commerce. But corporate tax avoidance, particularly by US firms, has propelled a possible new approach — formula apportionment — that could test the OECD's capacity to find common ground for its members and other important states. Moreover, the OECD's recent confrontation with the tax havens suggests an ambivalent posture towards non‐members, even as some of them play an ever‐larger role in OECD deliberations. The chapter argues that the OECD now practices a kind of global governance in the taxation area, but its legitimacy and competence will be greatly challenged in the years ahead.
Hiromitsu Ishi
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199242566
- eISBN:
- 9780191596452
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199242569.001.0001
- Subject:
- Economics and Finance, South and East Asia
The Japanese tax system has notably changed through the periods of post‐World War II; i.e., reconstruction, rapid economic growth, and recent economic stagnation. In order to clarify the function and ...
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The Japanese tax system has notably changed through the periods of post‐World War II; i.e., reconstruction, rapid economic growth, and recent economic stagnation. In order to clarify the function and the effect of tax policy and practices, it is important to analyse how the Japanese tax system has developed during each period, and how it has contributed to the performance, good or bad, of the Japanese economy. In addition, it is necessary to assess successive rounds of tax reforms in the past because they have been greatly debated so far particularly concerning the adoption of Japan's value‐added tax ( the consumption tax ). Many see a great need to reform the tax system to adjust for the ongoing changes in the Japanese economy. The tax debate is always with us in relation to the changing patterns of the economy.Less
The Japanese tax system has notably changed through the periods of post‐World War II; i.e., reconstruction, rapid economic growth, and recent economic stagnation. In order to clarify the function and the effect of tax policy and practices, it is important to analyse how the Japanese tax system has developed during each period, and how it has contributed to the performance, good or bad, of the Japanese economy. In addition, it is necessary to assess successive rounds of tax reforms in the past because they have been greatly debated so far particularly concerning the adoption of Japan's value‐added tax ( the consumption tax ). Many see a great need to reform the tax system to adjust for the ongoing changes in the Japanese economy. The tax debate is always with us in relation to the changing patterns of the economy.
Michael Keen, Alexander Klemm, and Victoria Perry
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0002
- Subject:
- Economics and Finance, Financial Economics
Did taxation have any role in precipitating the financial crisis? Are there lessons to be drawn for tax reform once the crisis has passed? This chapter reviews the main channels by which tax effects ...
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Did taxation have any role in precipitating the financial crisis? Are there lessons to be drawn for tax reform once the crisis has passed? This chapter reviews the main channels by which tax effects might have been felt, and which may require forceful attention. These include, in particular, the large tax biases favouring debt finance, and, in some countries, investment in housing. The complexities of national tax codes, and the international interaction of these, have, moreover, encouraged the use of complicated financial instruments and international tax planning, reducing transparency. Tax distortions did not trigger the 2008 crisis—in the sense that there are no obvious tax changes likely to have triggered it—but they are likely to have contributed by leading to higher leverage and more complexity than would otherwise have been the case. Most of these distortions have long been a source of concern, but dealing with them may be more important than previously supposed.Less
Did taxation have any role in precipitating the financial crisis? Are there lessons to be drawn for tax reform once the crisis has passed? This chapter reviews the main channels by which tax effects might have been felt, and which may require forceful attention. These include, in particular, the large tax biases favouring debt finance, and, in some countries, investment in housing. The complexities of national tax codes, and the international interaction of these, have, moreover, encouraged the use of complicated financial instruments and international tax planning, reducing transparency. Tax distortions did not trigger the 2008 crisis—in the sense that there are no obvious tax changes likely to have triggered it—but they are likely to have contributed by leading to higher leverage and more complexity than would otherwise have been the case. Most of these distortions have long been a source of concern, but dealing with them may be more important than previously supposed.
Raymond G. Batina and Toshihiro Ihori
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198297901
- eISBN:
- 9780191685361
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198297901.001.0001
- Subject:
- Economics and Finance, Financial Economics
The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping ...
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The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping generations' models, the more recent literature on optimal taxation in the Ramsey growth model and models of endogenous growth, and the literature on taxation in open economies. The book summarises the main arguments for and against consumption taxation, presents the main theoretical and empirical results of the technical literature, and, finally, extends the literature in a number of useful ways by complicating the models used to study tax issues. These extensions include bequeathing behaviour, the time consistency problem, the capital levy, charity and privately produced public goods, environmental externalities and renewable resources, durable goods and land, and money used in exchange and as an asset. Chapters are self-contained as far as possible, and each uses a variety of models rather than just one to study the issue at hand. Models and notation are explained each time they are used.Less
The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping generations' models, the more recent literature on optimal taxation in the Ramsey growth model and models of endogenous growth, and the literature on taxation in open economies. The book summarises the main arguments for and against consumption taxation, presents the main theoretical and empirical results of the technical literature, and, finally, extends the literature in a number of useful ways by complicating the models used to study tax issues. These extensions include bequeathing behaviour, the time consistency problem, the capital levy, charity and privately produced public goods, environmental externalities and renewable resources, durable goods and land, and money used in exchange and as an asset. Chapters are self-contained as far as possible, and each uses a variety of models rather than just one to study the issue at hand. Models and notation are explained each time they are used.
Julian S. Alworth and Giampaolo Arachi
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0001
- Subject:
- Economics and Finance, Financial Economics
This book originated from a conference held in Milan in April 2009. That conference addressed the issue of what lessons for tax policy could be drawn from the financial crisis. The papers presented ...
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This book originated from a conference held in Milan in April 2009. That conference addressed the issue of what lessons for tax policy could be drawn from the financial crisis. The papers presented at the conference examined whether tax arrangements in many countries and across jurisdictions may have influenced decision making and been a causal element in the crisis. The general conclusion from these papers was that the tax system had on balance played a minor role in triggering the crisis but that the crisis had served to underscore a number of weaknesses in existing tax systems. Since then the debate has focused on a number of other issues, many of which relate to the use of tax policy to address the problems in financial markets resulting from the crisis. This book attempts to provide a broad overview of these many disparate issues. This introduction summarizes the main themes that are raised in this book and highlights why the issue of how best to tax the financial sector will remain high on the agenda of future tax policy debates.Less
This book originated from a conference held in Milan in April 2009. That conference addressed the issue of what lessons for tax policy could be drawn from the financial crisis. The papers presented at the conference examined whether tax arrangements in many countries and across jurisdictions may have influenced decision making and been a causal element in the crisis. The general conclusion from these papers was that the tax system had on balance played a minor role in triggering the crisis but that the crisis had served to underscore a number of weaknesses in existing tax systems. Since then the debate has focused on a number of other issues, many of which relate to the use of tax policy to address the problems in financial markets resulting from the crisis. This book attempts to provide a broad overview of these many disparate issues. This introduction summarizes the main themes that are raised in this book and highlights why the issue of how best to tax the financial sector will remain high on the agenda of future tax policy debates.
Liam Murphy and Thomas Nagel
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195150162
- eISBN:
- 9780199833924
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195150163.003.0001
- Subject:
- Political Science, Political Theory
Taxation arouses strong passions, fueled not only by conflicts of economic self-interest, but by conflicting ideas of justice or fairness. Though empirical questions and questions of economic theory ...
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Taxation arouses strong passions, fueled not only by conflicts of economic self-interest, but by conflicting ideas of justice or fairness. Though empirical questions and questions of economic theory are inescapable in responsible discussion of tax policy, so too are philosophical questions of social and economic justice. But the topic has been neglected by philosophers, especially by comparison with such legal issues as abortion and freedom of expression. This book aims to make a start at filling this gap.Less
Taxation arouses strong passions, fueled not only by conflicts of economic self-interest, but by conflicting ideas of justice or fairness. Though empirical questions and questions of economic theory are inescapable in responsible discussion of tax policy, so too are philosophical questions of social and economic justice. But the topic has been neglected by philosophers, especially by comparison with such legal issues as abortion and freedom of expression. This book aims to make a start at filling this gap.
Philipp Genschel
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199596225
- eISBN:
- 9780191729140
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199596225.003.0004
- Subject:
- Political Science, European Union, International Relations and Politics
The joint-decision trap has not prevented the emergence of a substantial EU tax policy regime. Three key actors have contributed to this outcome: the European Court of Justice, by substituting ...
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The joint-decision trap has not prevented the emergence of a substantial EU tax policy regime. Three key actors have contributed to this outcome: the European Court of Justice, by substituting judge-made tax law for deadlocked Council tax legislation (exit by judicial bypass); the European Commission, by using its powers as ‘Guardian of the Treaty’ and legislative agenda setter to break Council deadlock over tax legislation (exit by nudging); and the governments of the member states, by employing various negotiation techniques to prevent intergovernmental conflict from leading to Council deadlock (exit by self-extrication). The effects on problem-solving capacity are mixed. European market integration has improved but national tax autonomy has declined. The balance of costs and benefits depends on the normative convictions of the observer, as well as the structural position of member states in the single market and their institutional traditions.Less
The joint-decision trap has not prevented the emergence of a substantial EU tax policy regime. Three key actors have contributed to this outcome: the European Court of Justice, by substituting judge-made tax law for deadlocked Council tax legislation (exit by judicial bypass); the European Commission, by using its powers as ‘Guardian of the Treaty’ and legislative agenda setter to break Council deadlock over tax legislation (exit by nudging); and the governments of the member states, by employing various negotiation techniques to prevent intergovernmental conflict from leading to Council deadlock (exit by self-extrication). The effects on problem-solving capacity are mixed. European market integration has improved but national tax autonomy has declined. The balance of costs and benefits depends on the normative convictions of the observer, as well as the structural position of member states in the single market and their institutional traditions.
Hiromitsu Ishi
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199242566
- eISBN:
- 9780191596452
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199242569.003.0003
- Subject:
- Economics and Finance, South and East Asia
Sheds light on the strategies traditionally adopted by the Japanese government concerning tax policy during the post‐war period of 1960s and 1970s.
Sheds light on the strategies traditionally adopted by the Japanese government concerning tax policy during the post‐war period of 1960s and 1970s.
STEVEN A. BANK
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195326192
- eISBN:
- 9780199775811
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195326192.003.008
- Subject:
- Law, Legal History
This chapter examines recent corporate tax reform activities and the future of corporate income tax. Topics covered include the dividend tax cut of 2003, the 2007 Treasury Conference and Rangel Bill, ...
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This chapter examines recent corporate tax reform activities and the future of corporate income tax. Topics covered include the dividend tax cut of 2003, the 2007 Treasury Conference and Rangel Bill, the corporate income tax and dividend policy, the trend away from corporations and toward alternative forms of business enterprises, and the globalization of corporate tax competition.Less
This chapter examines recent corporate tax reform activities and the future of corporate income tax. Topics covered include the dividend tax cut of 2003, the 2007 Treasury Conference and Rangel Bill, the corporate income tax and dividend policy, the trend away from corporations and toward alternative forms of business enterprises, and the globalization of corporate tax competition.
Raymond G. Batina and Toshihiro Ihori
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198297901
- eISBN:
- 9780191685361
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198297901.003.0001
- Subject:
- Economics and Finance, Financial Economics
This introductory chapter discusses the purpose of this book and its content. The main purpose of this book is to study consumption tax policy and the taxation of capital. Several reasons are ...
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This introductory chapter discusses the purpose of this book and its content. The main purpose of this book is to study consumption tax policy and the taxation of capital. Several reasons are presented why it is interesting to study different literature on consumption tax policy. First, consumption tax has the potential of generating significant amount of revenue and it can be a possible alternative to income tax as the main source of government income. Second, knowledge learned from studying consumption tax provides a good tool for help with future decisions regarding government policy. Third, studying consumption tax policy provides a good example of the way in which economics as a science evolves and of how policy debates evolve.Less
This introductory chapter discusses the purpose of this book and its content. The main purpose of this book is to study consumption tax policy and the taxation of capital. Several reasons are presented why it is interesting to study different literature on consumption tax policy. First, consumption tax has the potential of generating significant amount of revenue and it can be a possible alternative to income tax as the main source of government income. Second, knowledge learned from studying consumption tax provides a good tool for help with future decisions regarding government policy. Third, studying consumption tax policy provides a good example of the way in which economics as a science evolves and of how policy debates evolve.
Raymond G. Batina and Toshihiro Ihori
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198297901
- eISBN:
- 9780191685361
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198297901.003.0006
- Subject:
- Economics and Finance, Financial Economics
This chapter studies the time consistency problem as it affects tax policy. One example of the time consistency problem is the capital levy. Current governments cannot force future governments to ...
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This chapter studies the time consistency problem as it affects tax policy. One example of the time consistency problem is the capital levy. Current governments cannot force future governments to continue their tax policy and the usual scenario in most countries is that there is a ongoing change in tax policies as governments change. This time consistency problem tends to favor income tax over a consumption tax because of the temptation to tax fixed factors like capital at a high rate. However, tax evasion can reverse this scenario. Since it is easier to evade taxes on capital income than taxes on labor income, then it may be optimal to tax labor income at a higher rate than capital income.Less
This chapter studies the time consistency problem as it affects tax policy. One example of the time consistency problem is the capital levy. Current governments cannot force future governments to continue their tax policy and the usual scenario in most countries is that there is a ongoing change in tax policies as governments change. This time consistency problem tends to favor income tax over a consumption tax because of the temptation to tax fixed factors like capital at a high rate. However, tax evasion can reverse this scenario. Since it is easier to evade taxes on capital income than taxes on labor income, then it may be optimal to tax labor income at a higher rate than capital income.
Julian S. Alworth and Giampaolo Arachi (eds)
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.001.0001
- Subject:
- Economics and Finance, Financial Economics
The financial crisis has opened up a global debate on the taxation of the financial sector. A number of international policy initiatives, most notably by the G20, have called for major changes in the ...
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The financial crisis has opened up a global debate on the taxation of the financial sector. A number of international policy initiatives, most notably by the G20, have called for major changes in the tax treatment of financial institutions and transactions as well as individuals working in the financial sector. This book examines how tax policies contributed to the financial crisis and whether taxation can play a role in the reform efforts under way to establish a sounder and safer financial system. The book looks at the pros and cons of various tax initiatives, including limiting the tax advantages to debt financing, special taxes on the financial sector and financial transactions taxes.Less
The financial crisis has opened up a global debate on the taxation of the financial sector. A number of international policy initiatives, most notably by the G20, have called for major changes in the tax treatment of financial institutions and transactions as well as individuals working in the financial sector. This book examines how tax policies contributed to the financial crisis and whether taxation can play a role in the reform efforts under way to establish a sounder and safer financial system. The book looks at the pros and cons of various tax initiatives, including limiting the tax advantages to debt financing, special taxes on the financial sector and financial transactions taxes.
Thomas Hemmelgarn and Gaetan Nicodeme
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0005
- Subject:
- Economics and Finance, Financial Economics
The financial crisis has raised the question as to whether additional taxes on the financial sector would be advisable. This chapter offers an overview of the economics of a financial transaction tax ...
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The financial crisis has raised the question as to whether additional taxes on the financial sector would be advisable. This chapter offers an overview of the economics of a financial transaction tax and of a financial activities tax and describes countries’ experiences with these taxes.Less
The financial crisis has raised the question as to whether additional taxes on the financial sector would be advisable. This chapter offers an overview of the economics of a financial transaction tax and of a financial activities tax and describes countries’ experiences with these taxes.
Dale W. Jorgenson and Kun‐Young Yun
- Published in print:
- 1991
- Published Online:
- November 2003
- ISBN:
- 9780198285939
- eISBN:
- 9780191596490
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285930.003.0004
- Subject:
- Economics and Finance, Public and Welfare
Alternative policy provisions are compared for capital income taxation and the social rates of return in terms of marginal effective tax rates, since, by measuring these for different assets, it is ...
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Alternative policy provisions are compared for capital income taxation and the social rates of return in terms of marginal effective tax rates, since, by measuring these for different assets, it is possible to quantify the sources of distortions in decisions involving the allocation of capital among different uses. Marginal effective tax rates for the USA are presented for capital income over the period 1947–86 for corporate and non-corporate businesses, and households. Differences in the effective tax rates under the 1986 Tax Reform Act (and the pre-existing 1985 Tax Law) are then considered, looking again at the same three categories, and also giving data on social wedges (differences in social rates of return) between the short- and long-lived assets. The last section of the chapter looks at alternative approaches.Less
Alternative policy provisions are compared for capital income taxation and the social rates of return in terms of marginal effective tax rates, since, by measuring these for different assets, it is possible to quantify the sources of distortions in decisions involving the allocation of capital among different uses. Marginal effective tax rates for the USA are presented for capital income over the period 1947–86 for corporate and non-corporate businesses, and households. Differences in the effective tax rates under the 1986 Tax Reform Act (and the pre-existing 1985 Tax Law) are then considered, looking again at the same three categories, and also giving data on social wedges (differences in social rates of return) between the short- and long-lived assets. The last section of the chapter looks at alternative approaches.
Alasdair Roberts
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195374988
- eISBN:
- 9780199776849
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195374988.003.0004
- Subject:
- Political Science, American Politics
This chapter focuses on the problem of tax collection faced by developing countries in the era of liberalization. The 1980s and 1990s constituted a decade of “radical reform” in tax administration ...
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This chapter focuses on the problem of tax collection faced by developing countries in the era of liberalization. The 1980s and 1990s constituted a decade of “radical reform” in tax administration within the developing world, again built on the logic of discipline. But the naïve-institutionalist approach to reform proved vulnerable to counterattacks by well-entrenched bureaucratic, political, and social forces.Less
This chapter focuses on the problem of tax collection faced by developing countries in the era of liberalization. The 1980s and 1990s constituted a decade of “radical reform” in tax administration within the developing world, again built on the logic of discipline. But the naïve-institutionalist approach to reform proved vulnerable to counterattacks by well-entrenched bureaucratic, political, and social forces.
Thomas Hemmelgarn, Gaetan Nicodeme, and Ernesto Zangari
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0003
- Subject:
- Economics and Finance, Financial Economics
The 2008 financial crisis has been the worst economic crisis since the Great Depression of 1929. It has been characterized by a housing bubble in a context of rapid credit expansion, high ...
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The 2008 financial crisis has been the worst economic crisis since the Great Depression of 1929. It has been characterized by a housing bubble in a context of rapid credit expansion, high risk-taking, and exacerbated financial leverage, ending in deleveraging and a credit crunch when the bubble burst. This chapter discusses the interactions between housing tax provisions and the financial crisis. In particular, it reviews the existing evidence on the links between capital gains taxation of houses, interest mortgage deductibility, and characteristics of the crisis.Less
The 2008 financial crisis has been the worst economic crisis since the Great Depression of 1929. It has been characterized by a housing bubble in a context of rapid credit expansion, high risk-taking, and exacerbated financial leverage, ending in deleveraging and a credit crunch when the bubble burst. This chapter discusses the interactions between housing tax provisions and the financial crisis. In particular, it reviews the existing evidence on the links between capital gains taxation of houses, interest mortgage deductibility, and characteristics of the crisis.
Frank Pasquale
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195390131
- eISBN:
- 9780199775934
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195390131.003.011
- Subject:
- Law, Medical Law
This chapter focuses on the need for more targeted assessment of the impact of market forces on communities. Pilot programs encourage experimentation in the delivery system without risking widespread ...
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This chapter focuses on the need for more targeted assessment of the impact of market forces on communities. Pilot programs encourage experimentation in the delivery system without risking widespread disruption of care for the uninsured and emergency services. The Center for Medicare & Medicaid Services (CMS) has already embraced the idea of pilot programs in other contexts, and they could be especially appropriate if specialty hospitals were permitted in markets where general hospitals had a demonstrably poor record of community service. In such markets, cross-subsidization is probably already low, and specialty hospital threats to it are not as much of a concern as they are in areas where general hospitals consistently serve a substantial base of indigent and uninsured patients. Part II of the chapter makes the case for pilot programs by laying out basic facts about the current performance of specialty hospitals. Part III describes the increasingly complex legal landscape surrounding them—including directly applicable provisions of state and federal laws, and incumbent hospitals' strategies to deploy other regulations, statutes, and common law to gain competitive advantage. After briefly describing the drawbacks of all these strategies, Part IV advances the positive contribution of the chapter: a turn to pilot programs that would promote an evidence-based response to the rise of specialty hospitals.Less
This chapter focuses on the need for more targeted assessment of the impact of market forces on communities. Pilot programs encourage experimentation in the delivery system without risking widespread disruption of care for the uninsured and emergency services. The Center for Medicare & Medicaid Services (CMS) has already embraced the idea of pilot programs in other contexts, and they could be especially appropriate if specialty hospitals were permitted in markets where general hospitals had a demonstrably poor record of community service. In such markets, cross-subsidization is probably already low, and specialty hospital threats to it are not as much of a concern as they are in areas where general hospitals consistently serve a substantial base of indigent and uninsured patients. Part II of the chapter makes the case for pilot programs by laying out basic facts about the current performance of specialty hospitals. Part III describes the increasingly complex legal landscape surrounding them—including directly applicable provisions of state and federal laws, and incumbent hospitals' strategies to deploy other regulations, statutes, and common law to gain competitive advantage. After briefly describing the drawbacks of all these strategies, Part IV advances the positive contribution of the chapter: a turn to pilot programs that would promote an evidence-based response to the rise of specialty hospitals.
