This article presents discussion on the proposal for eliminating the double taxation of stock dividends. The focus of discussion of this proposal is how much the change would stimulate the economy, if at all, and which sections of the US population would probably benefit most. However, this article asserts that...
This paper assesses the importance of taxation on foreign direct investment contributing to the literature in two ways. First it relates bilateral FDI Foreign Direct Investment among OECD (Organisation for Economic Co-operation and Development) countries over the 1990s to a new set of estimates of corporate tax wedges that include...
This paper computes effective marginal and average tax rates that account for bilateral aspects of taxation and, therefore, vary across country-pairs and years. These tax rates serve to estimate the impact of corporate taxation on outbound stocks of bilateral Foreign Direct Investment FDI among OECD countries between 1991 and 2002....
This paper develops an infinite horizon model of public spending and taxation in which policy decisions are determined by legislative bargaining. The policy space incorporates both productive and distributive public spending and distortionary taxation. The productive spending is investing in a public good that benefits all citizens and the distributive...
The taxation of insurance companies and products has always been a unique and, for some, strange proposition. Since the Tax Reform Act of 1986 introduced a whole new scheme of taxation, the industry has had to deal with legislators who, while often marginally knowledgeable about the business of insurance, have...
Arguments for eliminating the double taxation of dividends apply only to dividends paid by corporations to individuals. The double and multiple taxation of dividends paid by one firm to another %uF818 inter-corporate dividends - was explicitly included in the 1930s as part of a package of tax and other policies...
This research aims to investigate how the taxes imposed upon P&C insurers affect the price level and underwriting profit margin, using two alternative approaches: the Capital Asset Pricing Model CAPM and the Option Pricing Model OPM. This research project studies the effects of taxation on premium rates and the underwriting...
This paper focuses on the Finance Act 2004 that sets out how the Government intends the taxation of pension schemes will be changed from 6 April 2006 A day, including 'unapproved' schemes, such as funded unapproved retirement benefits schemes ('FURBS') and unfunded unapproved retirement benefit schemes ('UURBS'). It summarizes some...
Within the United States, state and local governments have been struggling, and continue to struggle with the significant challenges e-commerce presents to systems of taxation. This paper first discusses sales and use taxes within the United States. Second, trends contributing to the increasing complexity of e-commerce taxation are identified. Third,...
The behavior of taxes on capital income in the recent decades points to the notion that international tax competition that follows globalization of capital markets put strong downward pressures on the taxation of capital income; a race to the bottom. The paper demonstrates that even if some enforcement of taxation...
Aggregate consumption Euler equations fit financial asset return data poorly. But they fit the return on the capital stock well, which leads to three empirical findings relating to the capital income tax burden. First, capital taxation drives a wedge between consumption growth and the expected pre-tax capital return. Second, capital...
From the executive summary: ‘A long-standing question in public economics is why governments do not rely on lump-sum taxes to satisfy revenue requirements. The previous literature has found that lump-sum taxation may result in ruinous political conflict, but has not disentangled the effects of restrictions on the efficiency of tax...
This paper studies the role of asset-market completeness for the properties of optimal policy. A suitable framework for this purpose is the small open economy with complete international asset markets. For in this environment changes in policy represent country-specific risk diversifiable in world markets. Our main finding is that the...
To issues of bonds, warrants, or other forms of public securities issued on account of public improvements and for the payment of which special assessments are or shall be levied upon and against property benefited thereby which do not constitute, at the time of their issuance, a general obligation or...
Arguments for eliminating the double taxation of dividends apply only to dividends paid by corporations to individuals. The double and multiple taxation of dividends paid by one firm to another intercorporate dividends - was explicitly included in the 1930s to eliminate pyramidal corporate groups. These structures exist elsewhere, and are...
This paper summarizes the current state of research on how taxation affects household decisions with respect to portfolio structure and asset trading. It discusses long-standing issues, such as the impact of differential taxation of income flows from stocks and bonds on the incentives for households to invest in these assets,...
This article explains the experience of Georgia on current issues in state taxation of computer software. It outline three issues of current interest to software companies in Georgia: 1.Taxation of sales of computer software for Georgia sales tax purposes. 2. Taxation of capitalized software for Georgia ad valorem tax purposes....
How does the size of the transfer system evolve in the short and in the long run? The authors modeled income redistribution as determined by voting among individuals of different types and income realizations. Taxation is distortionary because it discourages effort to accumulate human capital. Voters are fully rational, realizing...
No other innovation, or way of doing business, has revolutionized the international economy faster than the Internet. The speed of this change has been astounding. In the Industrial Age, as change took place, governments were able to react accordingly. In the Internet Age, today's innovation is tomorrow's standard. Governments are...
This paper examines the intertemporal effect of corporate income taxation on the investment behavior of a firm that faces imperfect capital markets. It shows that when capital markets are imperfect, the optimizing firm goes through different phases of growth. In this dynamic setting, the effect of a corporate tax on...
