This paper analyzes corporate and personal income taxes and inflation on the cost of investing in depreciable and inventory capital in Canada in 1963-78. Changes in rates of inflation and corporate tax rates theoretically have an ambiguous effect on the cost of capital. Tax depreciation and FIFO allowances based on historical prices can increase capital costs with inflation and decrease capital costs with corporate tax rates. Assuming all capital is owned by Canadian residents we find the gross of tax return to capital has not changed much in Canada over time for all types of capital considered. Effective tax rates were also measured, these vary considerably by type of capital and over time
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Queen's University, Department of Economics in its series Working Papers with number
506.
For technical questions regarding this item, or to correct its listing, contact: (Mark Babcock).
Related research
Keywords:
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.)