Download or read book Dividends and Tax Policy in the Long Run written by Steven A. Bank and published by . This book was released on 2006 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a long-standing debate as to whether changes in shareholder-level taxes have an effect on firm dividend policy. The traditional view is that tax changes influence dividends, while the new view is that there generally is no such effect. In support of the traditional view, recent observers point to the rise in dividends following the reduction in the tax rate on dividends in 2003. In fact, the resurgence in dividends has been so strong that President Bush has made it one of his top legislative priorities to permanently extend the tax cut, which is currently set to expire at the end of 2010. The popular assumption is that the rise in dividends - and any associated economic and corporate governance benefits - will only continue if the lower rate is made permanent. This Article challenges that assumption. Using finance theory and empirical evidence from the U.S. and other countries, this Article shows that the relationship between dividends and taxes over the long run is more complex than dividend tax cut proponents suggest. Because the 2003 tax cut was only a temporary cut, making it permanent may actually have an effect that is opposite of what is intended. The implication is not that a temporary tax cut is preferable to a permanent one, but rather that the attempt to influence corporate behavior through the tax laws should be resisted as either futile or potentially counterproductive.
Download or read book Tax Withholding and Estimated Tax written by and published by . This book was released on 1993 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Economics of Tax Policy written by Alan J. Auerbach and published by Oxford University Press. This book was released on 2017 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Debates about the optimal structure for tax policies and tax rates hardly cease among public, policy, or academic audiences. These have only grown more heated in the United States as the gap between incomes of the wealthiest 1 percent and the rest of the population continue to diverge. Tax research perhaps has not fully kept pace with the relentless demand of various interests to adjust tax policy. Nonetheless, specialists in the economics of tax policy in recent years have profited from advances in economic theory, econometric measurements, and data quality and access that are beginning to allow a greater consensus on what are the real effects of tax policy and how government levies affect individuals and businesses. The volume edited by Professors Auerbach and Smetters represents an attempt to reduce the lag between the conduct of research on tax issues and its transmission to a broader public. The contributions would explore highly topical issues such as the effects of income tax changes on economic growth, the potential effects of capping certain tax expenditures, the economics of adjusted business tax policy, and environmental tax options. Other essays would investigate perennially important themes such as the conduct of tax administration, the growing role of the tax system on education policy, tax policy toward low-income families, capital gains and estate taxation, and tax policy for retirement savings. A final paper would examine three different options for fundamental tax reform"--
Download or read book Paying dividends written by United States. Congress. House. Committee on Financial Services. Subcommittee on Oversight and Investigations and published by . This book was released on 2003 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Postwar Taxation and Economic Progress written by Harold M. Groves and published by READ BOOKS. This book was released on 2007-03 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: COMMITTEE FOR ECONOMIC DEVELOPMENT RESEARCH STUDY POSTWAR TAXATION AND ECONOMIC PROGRESS COMMITTEE FOR ECONOMIC DEVELOPMENT RESEARCH STUDIES THE LIQUIDATION OF WAR PRODUCTION By A. D. H. Kaplan DEMOBILIZATION OF WARTIME ECONOMIC CONTROLS By John Maurice Clark PROVIDING FOR UNEMPLOYED WORKERS IN THE TRANSITION By Richard A. Lester PRODUCTION, JOBS AND TAXES By Harold M. Groves INTERNATIONAL TRADE AND DOMESTIC EMPLOYMENT By Calvin B. Hoover AGRICULTURE IN AN UNSTABLE ECONOMY By Theodore W. Schultz POSTWAR TAXATION AND ECONOMIC PROGRESS By Harold M. Groves SUPPLEMENTARY RESEARCH PAPERS PERSONNEL PROBLEMS OF THE POSTWAR TRANSITION PERIOD By Charles A. Myers THE ECONOMICS OF A FREE SOCIETY By William Benton WORLD POLITICS FACES ECONOMICS By Harold D. Lasswell Published by C. E. D. COMMITTEE FOR ECONOMIC DEVELOPMENT RESEARCH STUDY Postwar Taxation and Economic Progress BY HAROLD M. GROVES Professor of Economics University of Wisconsin FIRST EDITION McGRAW-HILL BOOK COMPANY, INC. NEW YORK AND LONDON 1946 The Trustees of the Committee for Economic Development established the Research Committee to initiate studies into the principles of business policy and of public policy which will foster the full contribution by industry and commerce in the postwar period to the attainment of high and secure standards of living for people in all walks of life through maximum employment and high produc tivity in the domestic economy. From C. E. D. By-Laws. The studies are assigned by the Research Director to qualified scholars, drawn largely from leading universities. Under the by-laws all research is to be thoroughly objective in character, and the approach in each instance is to be from the standpoint of the general welfare and not from that of any special political or economic group. The reports present the findings of the authors, who have complete freedom to express their own con clusions. They do not purport to set forth the views of the Trustees, the Research Committee, the Research Advisory Board, the Research Staff, or the business men affiliated with the C. E. D. This report is the second volume on taxation as related to economic progress and the tenth in the series. The Research Committee draws on these studies and other available information in formulating its recommendations as to national policy for the problems examined. Its policy statements are offered as an aid to clearer understanding of steps to be taken to reach and maintain a high level of pro ductive employment and a steadily rising standard of living. The statements are available from the national or any local C. E. D. office. FOREWORD THIS study was undertaken to develop recommendations for a postwar tax system patterned genuinely in the public interest. The objective was not a blueprint for temporary transition policy but rather the specifications for a permanent tax structure toward which we should be working. While the book does illuminate transition issues, its main value lies in its contribution to perspective and understanding regarding long run problems. Fiscal-monetary policy is not considered extensively here. This subject will be dealt with in a forthcoming C. E. D. report, Jobs and Markets in the Transition, and in a later volume addressed to long-run fiscal problems. As a companion piece to Groves report, the reader will be interested in the policy statement by the Research Committee, A Postwar Federal Tax Plan for High Employment. This state ment, based on a preliminary study by Professor Groves of the relationship of taxation to incentives and to employment, as well as other materials, parallels closely Groves conclusions in this final study. The various research projects, completed and in process, that comprise the C. E. D. research program are outlined on pages 406-410. THEODORE O...
Download or read book The Labyrinth of Capital Gains Tax Policy written by Leonard E. Burman and published by Brookings Institution Press. This book was released on 2010-12-01 with total page 209 pages. Available in PDF, EPUB and Kindle. Book excerpt: Few issues in tax policy are as divisive as the capital gains tax. Should capital gains--the increase in value of assets such as stocks or businesses--be taxed at all? If so, when should they be taxed--when they are earned, or when they are realized? Should taxes be adjusted for inflation? And should gains be taxed at both the individual and corporate levels? In this book, Leonard Burman cuts through the political rhetoric to present the facts about capital gains. He begins by explaining the complex rules that govern the taxation of capital gains, examines the kinds of assets that produce them, and the factors that can lead to gains or losses. He then reviews the effects of capital gains taxation on saving and investment and considers the arguments for and against indexing capital gains taxes for inflation, as well as other options for altering the current system.
Download or read book Deficits and the Dividend Tax Cut written by Katherine Pratt and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2003 dividend tax cut is scheduled to expire in 2010, but President Bush continues to urge Congress to make it permanent. President Bush argues that the dividend tax cut promotes long-term economic growth, stimulates the economy, makes the tax system fairer, provides a steady source of income for needy senior citizens, and pays for itself. This Article evaluates the various rationales President Bush offered to justify the dividend tax cut, with an emphasis on the long-term growth rationale. The economic effects of the dividend tax cut, determined without regard to the fact that it was deficit financed, are controversial and the subject of continuing debate among economists. Early evidence suggests that the tax cut increased the size of dividend payouts and the initiation of dividend payouts. Other evidence suggests, however, that the dividend increases may not be as large as some studies indicated, may not be attributable to the dividend tax cut, and may be temporary. Taking into account the deficit financing of the dividend tax cut, the economic effects of the dividend tax cut are clearer. The deficit financing of the dividend tax cut creates negative growth consequences that offset any positive growth consequences of dividend tax relief. The dividend tax cut also is inequitable. It disproportionately benefits high-income Americans but disproportionately burdens low-income and middle-income Americans, due to the effects of cuts in discretionary spending, such as the 2004 and 2005 federal budget cuts that stalled necessary maintenance work on the New Orleans levee system just before Hurricane Katrina. Congress should not make the dividend tax cut permanent and should repeal the dividend tax cut immediately. Cutting the shareholder-level tax on dividends could have been a viable way of reforming the corporate tax if the dividend tax cut had been structured to ensure that corporate income is taxed at least once and Congress had made up the lost revenue in an equitable and efficient manner or had enacted offsetting spending cuts in an equitable and efficient manner. As enacted, the dividend tax cut does not ensure that corporate income will be taxed at least once and was deficit financed without regard for the harmful future economic and distributional consequences of that deficit financing. This Article also considers the tax policy implications of the long term fiscal gap and critiques the "five easy pieces" and "starve the beast" approaches to tax and budget policy.
Download or read book The Encyclopedia of Taxation Tax Policy written by Joseph J. Cordes and published by The Urban Insitute. This book was released on 2005 with total page 522 pages. Available in PDF, EPUB and Kindle. Book excerpt: "From adjusted gross income to zoning and property taxes, the second edition of The Encyclopedia of Taxation and Tax Policy offers the best and most complete guide to taxes and tax-related issues. More than 150 tax practitioners and administrators, policymakers, and academics have contributed. The result is a unique and authoritative reference that examines virtually all tax instruments used by governments (individual income, corporate income, sales and value-added, property, estate and gift, franchise, poll, and many variants of these taxes), as well as characteristics of a good tax system, budgetary issues, and many current federal, state, local, and international tax policy issues. The new edition has been completely revised, with 40 new topics and 200 articles reflecting six years of legislative changes. Each essay provides the generalist with a quick and reliable introduction to many topics but also gives tax specialists the benefit of other experts' best thinking, in a manner that makes the complex understandable. Reference lists point the reader to additional sources of information for each topic. The first edition of The Encyclopedia of Taxation and Tax Policy was selected as an Outstanding Academic Book of the Year (1999) by Choice magazine."--Publisher's website.
Download or read book Taxing Wages 2021 written by OECD and published by OECD Publishing. This book was released on 2021-04-29 with total page 651 pages. Available in PDF, EPUB and Kindle. Book excerpt: This annual publication provides details of taxes paid on wages in OECD countries. It covers personal income taxes and social security contributions paid by employees, social security contributions and payroll taxes paid by employers, and cash benefits received by workers. Taxing Wages 2021 includes a special feature entitled: “Impact of COVID-19 on the Tax Wedge in OECD Countries”.
Download or read book Dynamic Effects of Permanent and Temporary Dividend Tax Policies on Corporate Investment and Financial Policies written by Francois Gourio and published by . This book was released on 2007 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a neoclassical partial equilibrium model to analyze the dynamic effects of permanent and temporary dividend tax policies on corporate investment and financing decisions. Facing a tax system with corporate and personal income taxes, dividend tax and capital gains tax, a firm decides how much to invest and how to finance investment by equity or debt subject to collateral constraints and capital adjustment costs. We characterize steady state and simulate transitional dynamics following tax policy changes. We find the following novel results: First, both temporary and permanent dividend tax changes do not have long-run effects on a firm's capital formation, but have short-run effects on its investment and financial policies. Second, an anticipated temporary dividend tax cut has a short-run effect of lowering investment, similar to an anticipated permanent dividend tax increase. Third, a firm responds asymmetrically to an anticipated permanent dividend tax increase versus an anticipated permanent dividend tax cut due to the collateral constraint. Finally, in anticipation of future tax changes, the firm engages in tax arbitrage by borrowing or saving in order to transfer corporate earnings across time so as to reduce shareholder's tax burden.
Download or read book Personal Income Taxes and Corporate Investment written by Murray Z. Frank and published by . This book was released on 2010 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we examine the impact of major dividend tax changes in the U.S. since 1980 on corporate investment. We find that dividend taxation has a significant effect on firm-level investment, and the effect crucially depends on the firm's cash-richness. A dividend tax cut tends to stimulate cash-poor firms' investment. But such stimulating effect weakens for firms that are cash-rich. The most cash-rich firms can even decrease their investment following a dividend tax cut, which may be due to their incentive for inter-temporal tax arbitrage in anticipation of tax changes. Our study suggests that future policy making on dividend taxation and the empirical assessment of the policy impact should take into serious consideration the heterogeneity in firms' cash positions. Dividend tax increases may generate little impact on aggregate investment in the short run. But it may have negative impact on the long-run economic growth by disproportionately harming startup firms and fast-growing young firms that are likely to be cash-poor.
Download or read book Economic Consequences of Recent American Tax Policy written by Gerhard Colm and published by New York : Graduate Faculty of Political and Social Science, New School for Social Research. This book was released on 1938 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fiscal Policy and Long Term Growth written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-04-20 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.
Download or read book Tax Policy Leverage and Macroeconomic Stability written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2016-12-10 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risks to macroeconomic stability posed by excessive private leverage are significantly amplified by tax distortions. ‘Debt bias’ (tax provisions favoring finance by debt rather than equity) has increased leverage in both the household and corporate sectors, and is now widely recognized as a significant macroeconomic concern. This paper presents new evidence of the extent of debt bias, including estimates for banks and non-bank financial institutions both before and after the global financial crisis. It presents policy options to alleviate debt bias, and assesses their effectiveness. The paper finds that thin capitalization rules restricting interest deductibility have only partially been able to address debt bias, but that an allowance for corporate equity has generally proved effective. The paper concludes that debt bias should feature prominently in countries’ tax reform plans in the coming years.
Download or read book Top Incomes written by A. B. Atkinson and published by OUP Oxford. This book was released on 2010-04-01 with total page 984 pages. Available in PDF, EPUB and Kindle. Book excerpt: A rapidly growing area of economic research investigates the top of the income distribution using data from income tax records. This volume brings together studies of top incomes for twelve countries from around the world, including China, India, Japan, Argentina and Indonesia. Together with the first volume, published in 2007, the studies cover twenty two countries. They have a long time span, the earliest data relating to 1875 (for Norway), allowing recent developments to be placed in historical perspective. The volume describes in detail the source data and the methods employed. It will be an invaluable reference source for researchers in the field. Individual country chapters deal with the specific nature of the data for each of the countries, and describe the long-term evolution of top income shares. In the countries as a whole, dramatic changes have taken place at the top of the income distribution. Over the first part of the century, top income shares fell markedly. This largely took the form of a reduction in capital incomes. The different authors examine the impact of the First and Second World Wars, contrasting countries that were and were not engaged. They consider the impact of depressions and banking crises, and pay particular attention to the impact of progressive taxation. In the last 30 years, the shares of top incomes have increased markedly in the US and other Anglo-Saxon countries, reflecting the increased dispersion of earnings. The volume includes statistics on the much-discussed top pay and bonuses, providing a global perspective that discusses important differences between countries such as the lesser increase in Continental Europe. This book, together with volume 1, documents this interesting development and explores the underlying causes. The findings are brought together in a final summary chapter by Atkinson, Piketty and Saez.
Download or read book Double Dividend written by Dale W. Jorgenson and published by MIT Press. This book was released on 2013-11-29 with total page 639 pages. Available in PDF, EPUB and Kindle. Book excerpt: A rigorous and innovative approach for integrating environmental policies and fiscal reform for the U.S. economy. Energy utilization, especially from fossil fuels, creates hidden costs in the form of pollution and environmental damages. The costs are well documented but are hidden in the sense that they occur outside the market, are not reflected in market prices, and are not taken into account by energy users. Double Dividend presents a novel method for designing environmental taxes that correct market prices so that they reflect the true cost of energy. The resulting revenue can be used in reducing the burden of the overall tax system and improving the performance of the economy, creating the double dividend of the title. The authors simulate the impact of environmental taxes on the U.S. economy using their Intertemporal General Equilibrium Model (IGEM). This highly innovative model incorporates expectations about future prices and policies. The model is estimated econometrically from an extensive 50-year dataset to incorporate the heterogeneity of producers and consumers. This approach generates confidence intervals for the outcomes of changes in economic policies, a new feature for models used in analyzing energy and environmental policies. These outcomes include the welfare impacts on individual households, distinguished by demographic characteristics, and for society as a whole, decomposed between efficiency and equity.
Download or read book OECD G20 Base Erosion and Profit Shifting Project Neutralising the Effects of Branch Mismatch Arrangements Action 2 Inclusive Framework on BEPS written by OECD and published by OECD Publishing. This book was released on 2017-07-27 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2017 report sets out recommendations for branch mismatch rules that would bring the treatment of these structures into line with the treatment of hybrid mismatch arrangements as set out in the 2015 Report on Neutralising the Effects of Hybrids Mismatch Arrangements (Action 2 Report).
