Up or Down? Capital Income Taxation in the United States and the United Kingdom
AbstractEmpirical evidence suggests that the Effective Marginal Tax Rate (EMTR) on income from capital has increased considerably in both the United States and the United Kingdom during 1982-2005. The corporate tax literature predicts however that the EMTR should fall over time due to increasing international capital mobility and higher tax competition between governments. This paper argues that this inconsistency can be explained by the fact that EMTRs are currently computed from versions of the neoclassical investment model that omit deferred tax constraints faced by firms investing in both the United States and the United Kingdom.
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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Volume (Year): 68 (2012)
Issue (Month): 1 (March)
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Other versions of this item:
- Polito, Vito, 2011. "Up or down? Capital income taxation in the United States and the United Kingdom," Cardiff Economics Working Papers E2011/13, Cardiff University, Cardiff Business School, Economics Section.
- Vito Polito, 2010. "Up or Down? Capital Income Taxation in the United States and the United Kingdom," CESifo Working Paper Series 3260, CESifo Group Munich.
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
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