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Theoretical framework on the assessment of the tax burden on capital investment

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  • N. Nazukova

Abstract

The article dwells upon one of the prevailing methods of determining the tax burden on fixed asset investments - the effective tax rates. Despite the relevance of studying the impact of taxation on investment, only some empirical research has been accumulated currently, due to the complexities of measuring the effective tax rates. Therefore, this article is dedicated to the algorithm for calculating effective marginal tax rates based on the existing methodologies. The author's calculations are based on the specified methodology, which allows estimating the actual tax burden on business investment. The calculation has important practical significance as it allows determining the profitability of investments financed by different sources.

Suggested Citation

  • N. Nazukova, 2015. "Theoretical framework on the assessment of the tax burden on capital investment," Economy and Forecasting, Valeriy Heyets, issue 2, pages 21-33.
    • Handle: RePEc:eip:journl:y:2015:i:2:p:21-33
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    References listed on IDEAS

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    8. Congressional Budgete Office, 2012. "Effective Marginal Tax Rates for Low- and Moderate-Income Workers," Reports 43709, Congressional Budget Office.
    9. Michael P. Devereux & Rachel Griffith, 1998. "The Taxation of Discrete Investment Choices," Keele Department of Economics Discussion Papers (1995-2001) 98/08, Department of Economics, Keele University.
    10. Barro, Robert J. & Sahasakul, Chaipat, 1983. "Measuring the Average Marginal Tax Rates from Social Security and the Individual Income Tax," Working Papers 29, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
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