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The 2008 Financial Crisis and Taxation Policy

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  • Thomas Hemmelgarn

    ()
    (European Commission)

  • Gaetan Nicodeme

    ()
    (European Commission)

Abstract

The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, ending into deleveraging and credit crunch when the bubble burst. This paper discusses the interactions between tax policy and the financial crisis. In particular, it reviews the existing evidence on the links between taxes and many characteristics of the crisis. Finally, it examines some possible future tax options to prevent such crises.

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File URL: http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_papers/taxation_paper_20_en.pdf
File Function: final version, 2010
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Bibliographic Info

Paper provided by Directorate General Taxation and Customs Union, European Commission in its series Taxation Papers with number 20.

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Length: 42 pages
Date of creation: Jan 2010
Date of revision:
Handle: RePEc:tax:taxpap:0020

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Web page: http://ec.europa.eu/taxation_customs/index_en.htm
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Keywords: Taxation; financial crisis; banking crisis; fiscal incentives;

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References

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  1. Paul van den Noord, 2005. "Tax Incentives and House Price Volatility in the Euro Area: Theory and Evidence," Economie Internationale, CEPII research center, issue 101, pages 29-45.
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Citations

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Cited by:
  1. Serena Fatica & Thomas Hemmelgarn & Gaetan Nicodeme, 2012. "The Debt-Equity Bias: consequences and solutions," Taxation Papers 33, Directorate General Taxation and Customs Union, European Commission.
  2. Daianu, Daniel & Kallai, Ella & Lungu, Laurian, 2012. "Tax Policy under the Curse of Low Revenues: The Case of Romania (Part I)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 156-186, March.
  3. Evridiki Tsounta, 2011. "Home Sweet Home," IMF Working Papers 11/191, International Monetary Fund.
  4. Costa Cabral, Nazare, 2010. "Breve guia temático e bibliográfico sobre o estudo da actual crise financeira e económica
    [Short thematic guide to the study of current financial and economic crisis]
    ," MPRA Paper 20743, University Library of Munich, Germany.
  5. Ralf Ewert & Rainer Niemann, 2010. "Limited Liability, Asymmetric Taxation, and Risk Taking - Why Partial Tax Neutralities can be Harmful," CESifo Working Paper Series 3301, CESifo Group Munich.
  6. Luigi, Bernardi, 2011. "Economic crisis and taxation in Europe," MPRA Paper 31007, University Library of Munich, Germany.
  7. Ruud A. de Mooij & Michael Keen & Masanori Orihara, 2013. "Taxation, Bank Leverage, and Financial Crises," IMF Working Papers 13/48, International Monetary Fund.
  8. Christoph Spengel & Benedikt Zinn, 2012. "Steuerpolitik nach der Krise: Welche Maßnahmen sind für die Unternehmensbesteuerung in Deutschland zu ergreifen?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 19-51, 02.

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