Capital Income Taxation And The Current Account In A Small Open Economy PDF Download
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Author | : Yasushi Iwamoto |
Publisher | : |
Total Pages | : 48 |
Release | : 1989 |
Genre | : |
ISBN | : |
Download Capital Income Taxation and the Current Account in a Small Open Economy Book in PDF, ePub and Kindle
Author | : Assaf Razin |
Publisher | : |
Total Pages | : 30 |
Release | : 1991 |
Genre | : Capital gains tax |
ISBN | : |
Download Vanishing Tax on Capital Income in the Open Economy Book in PDF, ePub and Kindle
The increased integration of the world capital market implies that the supply of capital becomes more elastic, and therefore potentially a less efficient base for taxation. In general, the optimal taxation of capital income is subject to two conflicting forces. On the one hand the return on existing capital is a pure rent which is efficient to fully tax away. On the other hand taxing the returns on investment in new capital would retard growth, thus generating inefficiencies. Capturing these considerations, the paper carries out a simple optimal tax analysis for an open economy, which is fully integrated in the world capital markets. The analysis identifies well defined circumstances in which the capital income tax vanishes.
Author | : Thomas Aronsson |
Publisher | : |
Total Pages | : 0 |
Release | : 2020 |
Genre | : |
ISBN | : |
Download Social Comparisons and Optimal Taxation in a Small Open Economy Book in PDF, ePub and Kindle
In this paper, we analyze how international capital mobility affects the optimal labor and capital income tax policy in a small open economy when consumers care about relative consumption. The main results crucially depend on whether the government can tax returns on savings abroad. If the government can use flexible residence-based capital income taxes, then the optimal policy rules from a closed economy largely carry over to the case of a small open economy. If it cannot, then capital income taxes become completely ineffective. The labor income taxes must then indirectly also reflect the corrective purpose that the absent capital income tax would have had.
Author | : Patrick K. Asea |
Publisher | : |
Total Pages | : 62 |
Release | : 1997 |
Genre | : Capital gains tax |
ISBN | : |
Download Capital Income Taxation and Risk-taking in a Small Open Economy Book in PDF, ePub and Kindle
How do capital income taxes affect household portfolio choice and growth? We" approach this question within the context of a stochastic model of a small open economy in" which taxes on income from domestic capital (equity) and foreign bonds affect household" portfolio choice, welfare and the growth rate of the economy. The theoretical and numerical" analysis demonstrates the important role that risk plays in determining the mean and variability" of growth as well as the conditions under which a higher tax rate can be welfare improving. To" shed more light on the complex theoretical interaction between taxes and risk-taking we estimate" a reduced-form multinomial probit model of household portfolio choice using the method of" simulated moments. The empirical evidence is in stark contrast to the conventional wisdom " we find that higher taxes make it less likely that the household will hold risky assets."
Author | : Assaf Razin |
Publisher | : |
Total Pages | : 52 |
Release | : 1994 |
Genre | : |
ISBN | : |
Download The Status of Capital Income Taxation in the Open Economy Book in PDF, ePub and Kindle
Author | : Horst Siebert |
Publisher | : Routledge |
Total Pages | : 281 |
Release | : 2019-07-11 |
Genre | : Political Science |
ISBN | : 1000309363 |
Download Reforming Capital Income Taxation Book in PDF, ePub and Kindle
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 | : M.K. McKeehan |
Publisher | : |
Total Pages | : |
Release | : 2017 |
Genre | : |
ISBN | : |
Download Balancing Act : Weighing the Factors Affecting the Taxation of Capital Income in a Small Open Economy Book in PDF, ePub and Kindle
Alternative economic theories yield dramatically different prescriptions for optimal capital taxation in small open economies. On the one hand, foreign firms, including those with investments that yield firm-specific above-normal returns, have a large number of alternative investment opportunities; this suggests that the supply of foreign direct investment is highly elastic, which implies that small open economies should avoid imposing any source-based taxes on capital income. On the other hand, governments invariably want to tax any above-normal returns earned by location-specific capital, especially if the returns accrue to foreigners, and to take full advantage of the potential revenue increase from any "treasury transfer" effect that arises due to residence-based tax systems with foreign tax credits, such as that utilized by the USA. These factors suggest that investment is highly inelastic with respect to capital taxation, so that source-based capital income taxation is desirable; indeed, in one special case, the capital income tax rate for a small open economy should equal the relatively high US tax rate. Moreover, this difficult trade-off is in practice complicated by numerous additional factors: deferral of unrepatriated profits and cross-crediting of foreign tax credits for the US multinationals, foreign direct investment from firms from countries that, unlike the USA, operate territorial systems, and the existence of opportunities for both international capital income shifting and labour income shifting. In this paper, the authors analyze optimal capital income taxation in a small open economy model that attempts to balance these conflicting factors.
Author | : Jane Gravelle |
Publisher | : MIT Press |
Total Pages | : 370 |
Release | : 1994 |
Genre | : Business & Economics |
ISBN | : 9780262071581 |
Download The Economic Effects of Taxing Capital Income Book in PDF, ePub and Kindle
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 | : Stefan Sinn |
Publisher | : |
Total Pages | : 116 |
Release | : 1993 |
Genre | : Capital market |
ISBN | : |
Download Competition for Capital Book in PDF, ePub and Kindle
Author | : David G. Hartman |
Publisher | : |
Total Pages | : 22 |
Release | : 1985 |
Genre | : Capital gains tax |
ISBN | : |
Download On the Optimal Taxation of Capital Income in the Open Economy Book in PDF, ePub and Kindle
The optimal taxation of foreign and domestic investors' incomes is examined with a simple overlapping-generations model. Even when tax rates are allowed to discriminate between these groups, the optimal tax rates on both domestic and foreign investors' incomes in the small open economy are identical and equal to the optimal rate of tax in the closed economy. In light of the emphasis in the literature on the extent to which the elasticity of international flows might lower optimal capital income taxes, this conclusion is quite a surprise. In the large open economy, the optimal tax rate on foreign investors'income alone is a weighted average of one and the small economy tax rate. The optimal tax rate on domestic income is, again, unaffected by the openness ofthe economy. When a uniform tax rate must be set in the large open economy, it is generally higher than the optimal tax rate for a closed economy, a conclusion contrary to the conventional wisdom. However, a higher elasticity of international capital flows is associated with a lower tax rate, as expected, butthe rate remains above the closed-economy rate. In summary, openness matters for optimal tax policy, primarily in the case of the large economy. The reason is mainly the ability to burden foreign investors with a tax liability