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Broadening the tax base of neutral business taxes

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  • Ruf, Martin

Abstract

The Samuelson tax is a neutral business income tax on the normal return on capital only. I discuss two modifications of the Samuelson tax in order to include pure profits in its tax base, but still achieve neutral business taxation.

Suggested Citation

  • Ruf, Martin, 2012. "Broadening the tax base of neutral business taxes," Economics Letters, Elsevier, vol. 117(1), pages 81-83.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:81-83
    DOI: 10.1016/j.econlet.2012.04.093
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    References listed on IDEAS

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    1. Devereux, Michael P & Griffith, Rachel, 2003. "Evaluating Tax Policy for Location Decisions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(2), pages 107-126, March.
    2. Paul A. Samuelson, 1964. "Tax Deductibility of Economic Depreciation to Insure Invariant Valuations," Journal of Political Economy, University of Chicago Press, vol. 72, pages 604-604.
    3. Bond, Stephen R. & Devereux, Michael P., 2003. "Generalised R-based and S-based taxes under uncertainty," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1291-1311, May.
    4. Johannes Becker & Clemens Fuest, 2010. "Taxing Foreign Profits With International Mergers And Acquisitions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 171-186, February.
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    Cited by:

    1. Jose Antonio de Franca & Osvaldo Candido da Silva Filho & Wilfredo Sosa Sandoval, 2019. "Marginal Effect of Direct Tax on Profits: A Study on the Taxation of the Finance Industry in Brazil," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(3), pages 1-11, March.
    2. Ramón E. López & Pablo Gutiérrez Cubillos & Eugenio Figueroa, 2020. "The Tax Paradox and Weak Tax Neutrality," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 1150-1169, January.
    3. Kristina Hemmerich & Dirk Kiesewetter, 2014. "Entscheidungsneutrale, gleichmäßige und rechtssichere Einkommensbesteuerung unter Unsicherheit," Schmalenbach Journal of Business Research, Springer, vol. 66(2), pages 98-119, March.
    4. Hemmerich, Kristina & Kiesewetter, Dirk, 2012. "Ein Nachruf auf die Diskussion zur entscheidungsneutralen Gewinnbesteuerung," arqus Discussion Papers in Quantitative Tax Research 139, arqus - Arbeitskreis Quantitative Steuerlehre.

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    More about this item

    Keywords

    Neutral taxation; Pure profit; Optimal taxation; Business taxation;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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