The transition of the eastern European countries into market-based economies and their potential integration into the European Union raise questions about how their capital income tax systems should be structured and to what extent they are in line with the rest of Europe. This note presents a brief analysis of the tax systems currently in place and considers what issues should be of concern in setting tax policy in the future. The impact capital income taxes have on the incentives for firms to invest in the Czech Republic and Poland is described using a marginal effective tax wedge and an average effective tax rate. Simulations of some simple reforms are also presented. First, some brief comments are made on what the optimal tax policy for smaller capital-importing countries might be and how this should inform policy in the transition economies. The standard theoretical literature on optimal taxation in a small open economy suggests that residence-based taxation is optimal, implying that the tax
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.
Volume (Year): 17 (1996) Issue (Month): 3 (August) Pages: 91-103 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:ifs:fistud:v:17:y:1996:i:3:p:91-103
Contact details of provider: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE Phone: (+44) 020 7291 4800 Fax: (+44) 020 7323 4780 Email: Web page: http://www.ifs.org.uk
Order Information: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE Email:
For technical questions regarding this item, or to correct its listing, contact: (Emma Hyman).
Related research
Keywords:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)