IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v20y1987i3p555-87.html
   My bibliography  Save this article

The Taxation of Corporate Investment Income in Canada: An Analysis of Marginal Effective Tax Rates

Author

Listed:
  • Michael J. Daly
  • Jack Jung

Abstract

This paper reports estimates of marginal effective tax rates on corporate investment income in Canada, taking into account sales taxes as well as corporation, personal, and business property taxes. Marginal effective tax rates are found to vary widely dependin g upon the type of asset acquired, the industry in which the asset is used, the manner in which the investment is financed, and the tax st atus of the investor supplying the funds. An examination of the sensi tivity of these estimates to various tax arbitrage assumptions reveal s the pattern of marginal effective tax rates to be similar irrespect ive of the arbitrage assumption used.

Suggested Citation

  • Michael J. Daly & Jack Jung, 1987. "The Taxation of Corporate Investment Income in Canada: An Analysis of Marginal Effective Tax Rates," Canadian Journal of Economics, Canadian Economics Association, vol. 20(3), pages 555-587, August.
    • Handle: RePEc:cje:issued:v:20:y:1987:i:3:p:555-87
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28198708%2920%3A3%3C555%3ATTOCII%3E2.0.CO%3B2-8
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David F. Bradford & Don Fullerton, 1981. "Pitfalls in the Construction and Use of Effective Tax Rates," NBER Working Papers 0688, National Bureau of Economic Research, Inc.
    2. Robin Boadway & Neil Bruce & Jack Mintz, 1984. "Taxation, Inflation, and the Effective Marginal Tax Rate on Capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 17(1), pages 62-79, February.
    3. Grady, Patrick, 1986. "The Recent Corporate Income Tax Reform Proposals in Canada and the United States," MPRA Paper 18749, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lemelin, André & Savard, Luc, 2022. "What do CGE models have to say about fiscal reform?," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 758-774.
    2. Bob Hamilton & Jack Mintz & John Whalley, 1991. "Decomposing the Welfare Costs of Capital Tax Distortions: The Importance of Risk Assumptions," NBER Working Papers 3628, National Bureau of Economic Research, Inc.
    3. William Crowder & Mark Wohar, 2004. "A cointegrated structural VAR model of the Canadian economy," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 195-213.
    4. Benjaming Dachis & Adam Found & Peter Tomlinson, 2013. "What Gets Measured Gets Managed: The Economic Burden of Business Property Taxes," e-briefs 166, C.D. Howe Institute.
    5. Marion Steele, 1993. "Conversions, Condominiums and Capital Gains: The Transformation of the Ontario Rental Housing Market," Urban Studies, Urban Studies Journal Limited, vol. 30(1), pages 103-126, February.
    6. Kenneth McKenzie & Jack Mintz, 1992. "Tax Effects on the Cost of Capital," NBER Chapters, in: Canada-U.S. Tax Comparisons, pages 189-216, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Manuel González-Páramo, 1991. "Imposición personal e incentivos fiscales al ahorro en España," Estudios Económicos, Banco de España, number 46.
    2. Puspa Kandel Ph.D., 2001. "Corporate Tax in Nepal: Effective Burden (1975-2000)," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 13, pages 66-81, April.
    3. Julie Collins & Douglas Shackelford, 1995. "Corporate domicile and average effective tax rates: The cases of Canada, Japan, the United Kingdom, and the United States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(1), pages 55-83, February.
    4. James Alm, 2015. "Analyzing and Reforming Tunisia's Tax System," Working Papers 1515, Tulane University, Department of Economics.
    5. John B. Burbidge & Kirk A. Collins & James B. Davies & Lonnie Magee, 2012. "Effective tax and subsidy rates on human capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 189-219, February.
    6. Paolo M. Panteghini, 2012. "Corporate Debt, Hybrid Securities, and the Effective Tax Rate," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(1), pages 161-186, February.
    7. Sinn, Hans-Werner, 1991. "The non-neutrality of inflation for international capital movements," European Economic Review, Elsevier, vol. 35(1), pages 1-22, January.
    8. Jack Mintz & Philip Bazel, 2020. "The 2019 Tax Competitiveness Report: Canada’s Investment and Growth Challenge," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 13(1), March.
    9. James Alm & Mir Ahmad Khan, 2015. "Assessing and Reforming Enterprise Taxation in Pakistan," Working Papers 1513, Tulane University, Department of Economics.
    10. Papke, Leslie E., 1991. "Interstate business tax differentials and new firm location : Evidence from panel data," Journal of Public Economics, Elsevier, vol. 45(1), pages 47-68, June.
    11. Roger H. Gordon & Joosung Jun & Joel Slemrod, 1993. "Taxes and the Form of Ownership of Foreign Corporate Equity," NBER Chapters, in: Studies in International Taxation, pages 13-46, National Bureau of Economic Research, Inc.
    12. Joosung Jun, 1994. "How taxation affects foreign direct investment (country - specific evidence)," Policy Research Working Paper Series 1307, The World Bank.
    13. Bev Dahlby & Kevin Milligan, 2017. "From theory to practice: Canadian economists’ contributions to public finance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1324-1347, December.
    14. Don Fullerton & Yolanda Kodrzycki Henderson, 1987. "The Impact of Fundamental Tax Reform on the Allocation of Resources," NBER Chapters, in: The Effects of Taxation on Capital Accumulation, pages 401-444, National Bureau of Economic Research, Inc.
    15. Jack Mintz, 2010. "Measuring Effective Tax Rates For Oil and Gas in Canada," SPP Technical Papers, The School of Public Policy, University of Calgary, March.
    16. Don Fullerton, 1983. "Which Effective Tax Rate?," NBER Working Papers 1123, National Bureau of Economic Research, Inc.
    17. Sinha, Pankaj & Bansal, Vishakha, 2012. "Algorithm for calculating corporate marginal tax rate using Monte Carlo simulation," MPRA Paper 40811, University Library of Munich, Germany.
    18. Anatoli Kuprianov, 1997. "Tax disincentives to commercial bank lending," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 67-97.
    19. Mark E. Doms & Wendy F. Dunn & Stephen D. Oliner & Daniel E. Sichel, 2004. "How Fast Do Personal Computers Depreciate? Concepts and New Estimates," NBER Chapters, in: Tax Policy and the Economy, Volume 18, pages 37-80, National Bureau of Economic Research, Inc.
    20. Marcel Gérard, 2002. "Tax Competition, the Distribution of MNE's Ownership and the Wage Formation Process," CESifo Working Paper Series 631, CESifo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:20:y:1987:i:3:p:555-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.