A Superior Hybrid Cash-Flow Tax on Corporations
AbstractThis paper proposes a new hybrid cash-flow tax on corporations that, on one hand, taxes only excess corporate profits as they accrue, and, on the other hand, treats real and financial transactions neutrally. It is, therefore, a superior tax compared to the cash-flow tax on real transactions that seems to have gained common acceptance. The hybrid tax is a modified version of the cash-flow tax on real and financial transactions combined. The modification involves replacing expensing of fixed assets with normal depreciation allowances, but the undepreciated value of fixed assets is carried forward with interest at the opportunity cost of equity capital.
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.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 06/117.
Date of creation: 01 May 2006
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ACC-2006-08-05 (Accounting & Auditing)
- NEP-ALL-2006-08-05 (All new papers)
- NEP-FMK-2006-08-05 (Financial Markets)
- NEP-PBE-2006-08-05 (Public Economics)
- NEP-PUB-2006-08-05 (Public Finance)
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.:
- David F. Bradford, 1998.
"Transition to and Tax-Rate Flexibility in a Cash-Flow-Type Tax,"
in: Tax Policy and the Economy, Volume 12, pages 151-172
National Bureau of Economic Research, Inc.
- David F. Bradford, 1998. "Transition to and Tax Rate Flexibility in a Cash-Flow Type Tax," NBER Working Papers 6465, National Bureau of Economic Research, Inc.
- Bradford, David F, 2003.
"Addressing the Transfer-Pricing Problem in an Origin-Basis X Tax,"
International Tax and Public Finance,
Springer, vol. 10(5), pages 591-610, September.
- David Bradford, 2003. "Addressing the Transfer-Pricing Problem in an Origin-Basis X Tax," CESifo Working Paper Series 997, CESifo Group Munich.
- David F. Bradford, 2003. "Addressing the Transfer-Pricing Problem in an Origin-Basis X Tax," NBER Working Papers 9843, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.