Welfare Effects of Distortionary Company Car Taxation
Abstract
In Europe, company cars are offered by employers as fringe benefits to their employees at a lower price than employees pay in the car market, mainly due to favourable taxation of company cars. We analyse the welfare effects of favourable taxation of company cars for the Netherlands. The estimated annual welfare costs of the distortionary taxation of company cars are estimated to be at least €2,000 per company car. For the whole of Europe, these welfare costs are estimated to be at least €40 billion per year.Download Info
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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-060/3.Length:
Date of creation: 03 Aug 2007
Date of revision: 20 Mar 2009
Handle: RePEc:dgr:uvatin:20070060
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Related research
Keywords: Company car; car ownership; car value; welfare costs;Other versions of this item:
- Eva Gutiérrez‐i‐Puigarnau & Jos N. Van Ommeren, 2011. "Welfare Effects Of Distortionary Fringe Benefits Taxation: The Case Of Employer‐Provided Cars," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1105-1122, November.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Government Pricing and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-14 (All new papers)
- NEP-PUB-2007-08-14 (Public Finance)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- De Borger, Bruno & Wuyts, Bart, 2011.
"The tax treatment of company cars, commuting and optimal congestion taxes,"
Transportation Research Part B: Methodological,
Elsevier, vol. 45(10), pages 1527-1544.
- De Borger B. & Wuyts B., 2010. "The tax treatment of company cars, commuting and optimal congestion taxes," Working Papers 2010017, University of Antwerp, Faculty of Applied Economics.
- Jos N. van Ommeren & Eva Gutierrez-i-Puigarnau, 2011. "Distortionary Company Car Taxation: Deadweight Losses through Increased Car Ownership," Tinbergen Institute Discussion Papers 11-100/3, Tinbergen Institute.
- Copenhagen Economics, 2010. "Company Car Taxation," Taxation Papers 22, Directorate General Taxation and Customs Union, European Commission.
- Hans R. A. Koster & Piet Rietveld & Jos N. van Ommerren, 2011. "Is the Sky the Limit? An Analysis of High-Rise Office Buildings," SERC Discussion Papers 0086, Spatial Economics Research Centre, LSE.
- De Borger B. & Glazer A., 2010.
"Subsidizing Consumption to Signal Quality of Workers,"
Working Papers
2010016, University of Antwerp, Faculty of Applied Economics.
- Bruno De Borger & Amihai Glazer, 2010. "Subsidizing Consumption to Signal Quality of Workers," Working Papers 101101, University of California-Irvine, Department of Economics.
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