Measuring Effective Tax Rates in the Presence of Multiple Inputs: A Production Based Approach
AbstractWe suggest a new method for comparing tax regimes acrossjurisdictions. The approach aggregates taxes on inputs by focussingon production, rather than investment, decisions. Taxes on variousinputs affect production decisions by increasing marginal costs.By calculating the difference between the tax-inclusive and tax-exclusivemarginal cost of production, we determine the effective excisetax rate on marginal costs implied by all of the various taxesimposed upon the firm‘s inputs. The effective tax rate on marginalcosts provides a convenient summary measure of the potentialimpact of taxes on all inputs on production location decisions. Copyright Kluwer Academic Publishers 1997
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal International Tax and Public Finance.
Volume (Year): 4 (1997)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102915
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.:
- Alan J. Auerbach, 1980.
"Wealth Maximization and the Cost of Capital,"
NBER Working Papers
0254, National Bureau of Economic Research, Inc.
- Robin Boadway & Neil Bruce & Jack Mintz, 1981.
"Corporate Taxation and the Cost of Holding Inventories,"
442, Queen's University, Department of Economics.
- R. W. Boadway & N. Bruce & J. Mintz, 1982. "Corporate Taxation and the Cost of Holding Inventories," Canadian Journal of Economics, Canadian Economics Association, vol. 15(2), pages 278-93, May.
- Kenneth J. McKenzie, 1994.
"The Implications of Risk and Irreversibility for the Measurement of Marginal Effective Tax Rates on Capital,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 27(3), pages 604-19, August.
- McKenzie, K.J., 1992. "The Implications of Risk and Irreversibility for the Measurement of Marginal Effective Tax Rates of Capital," Papers 137, Calgary - Department of Economics.
- Robin Boadway & Neil Bruce & Jack Mintz, 1984. "Taxation, Inflation, and the Effective Marginal Tax Rate on Capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 17(1), pages 62-79, February.
- Chun-Yan Kuo & Thomas Mcgirr & Satya Poddar, 1988. "Measuring the Non-Neutralities of Sales and Excise Taxes in Canada," Development Discussion Papers 1988-08, JDI Executive Programs.
- John B. Shoven & John Whalley, 1992. "Canada-U.S. Tax Comparisons," NBER Books, National Bureau of Economic Research, Inc, number shov92-1.
- Kenneth McKenzie & Jack Mintz, 1992. "Tax Effects on the Cost of Capital," NBER Chapters, in: Canada-U.S. Tax Comparisons, pages 189-216 National Bureau of Economic Research, Inc.
- Wilton, D & Prescott, D., 1993. "The Effects of Tax Increases on Wage and Labour Costs," Papers 93-29, Queen's at Kingston - School of Policy Studies.
- Duanjie Chen & Jack Mintz, 2005. "Assessing Ontario's Fiscal Competitiveness," Canadian Public Policy, University of Toronto Press, vol. 31(1), pages 1-28, March.
- Jack Mintz, 2008. "Reply/Réponse Fiscal Competitiveness and Total Competitiveness: A Note," Canadian Public Policy, University of Toronto Press, vol. 34(4), pages 519-520, December.
- Gérard, Marcel, 1999. "L’imposition des revenus de l’investissement en Europe, une hétérogénéité coûteuse," L'Actualité Economique, Société Canadienne de Science Economique, vol. 75(1), pages 401-426, mars-juin.
- Alowin Moes, 1999. "Effective Tax Rates on Capital in New Zealand - Changes 1972-1998," Treasury Working Paper Series 99/12, New Zealand Treasury.
- Richard Fabling & Norman Gemmell & Richard Kneller & Lynda Sanderson, 2013.
"Estimating Firm-Level Effective Marginal Tax Rates and the User Cost of Capital in New Zealand,"
Treasury Working Paper Series
13/29, New Zealand Treasury.
- Richard Fabling & Norman Gemmell & Richard Kneller & Lynda Sanderson, 2013. "Estimating Firm-Level Effective Marginal Tax Rates and the User Cost of Capital in New Zealand," Working Papers 13_14, Motu Economic and Public Policy Research.
- Desai, Mihir A. & Foley, C. Fritz & Hines, James Jr., 2004.
"Foreign direct investment in a world of multiple taxes,"
Journal of Public Economics,
Elsevier, vol. 88(12), pages 2727-2744, December.
- Mihir A. Desai & James R. Hines Jr., 2001. "Foreign Direct Investment in a World of Multiple Taxes," NBER Working Papers 8440, National Bureau of Economic Research, Inc.
- Fabling, Richard & Gemmell, Norman & Kneller, Richard & Sanderson, Lynda, 2013. "Estimating Firm-Level Effective Tax Rates and the User Cost of Capital in New Zealand," Working Paper Series 2854, Victoria University of Wellington, Chair in Public Finance.
- Michael Devereux, 2003.
"Measuring taxes on income from capital,"
IFS Working Papers
W03/04, Institute for Fiscal Studies.
- Jack M. Mintz & Stephen R. Richardson, 2001. "Taxation of Financial Intermediation Activities in Hong Kong," Working Papers 092001, Hong Kong Institute for Monetary Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.