Taxation and the Financial Sector
In the aftermath of the recent financial crisis, a variety of taxes on financial institutions have been proposed or enacted. The justifications for these taxes range from punishing those deemed to have caused or unduly profited from the crisis, toaddressing the budgetary costs of the crisis, to better aligning banks’ and bank executives’ incentives in light of the broader social costs and benefits of their actions. Although there is a long-standing literature on corrective, or Pigouvian, taxation, most of it has been applied to environmental externalities, and the externalities that arise from the actions of financial institutions are structurally different. This paper reviews the justifications for special taxes on financial institutions, and addresses what kinds of taxes are most likely to achieve the various stated objectives, which often are in conflict. It then critically assesses the principal taxes that have been proposed or enacted to date: financial transactions taxes, bonus taxes, and taxes on firms in the financial sector based on size, bank liabilities, or excess profits.
Volume (Year): 63 (2010)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: 529 14th Street NW Suite 750, Washington DC 20045|
Web page: https://www.ntanet.org/
More information through EDIRC
References listed on IDEAS
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.:
- Louis Kaplow & Steven Shavell, 1997.
"On the Superiority of Corrective Taxes to Quantity Regulation,"
NBER Working Papers
6251, National Bureau of Economic Research, Inc.
- Louis Kaplow & Steven Shavell, 2002. "On the Superiority of Corrective Taxes to Quantity Regulation," American Law and Economics Review, Oxford University Press, vol. 4(1), pages 1-17, January.
- Slemrod, Joel, 2009. "Lessons for Tax Policy in the Great Recession," National Tax Journal, National Tax Association, vol. 62(3), pages 387-397, September.
- Duarte, Jefferson & Longstaff, Francis A. & Yu, Fan, 2005. "Risk and Return in Fixed Income Arbitage: Nickels in Front of a Steamroller?," University of California at Los Angeles, Anderson Graduate School of Management qt6zx6m7fp, Anderson Graduate School of Management, UCLA.
- Thomas Hemmelgarn & Gaëtan Nicodème, 2010.
"The 2008 Financial Crisis and Taxation Policy,"
Working Papers CEB
10-006.RS, ULB -- Universite Libre de Bruxelles.
- Hemmelgarn, Thomas & Nicodème, Gaëtan, 2010. "The 2008 Financial Crisis and Taxation Policy," CEPR Discussion Papers 7666, C.E.P.R. Discussion Papers.
- Thomas Hemmelgarn & Gaëtan J.A. Nicodème, 2010. "The 2008 Financial Crisis and Taxation Policy," CESifo Working Paper Series 2932, CESifo Group Munich.
- Thomas Hemmelgarn & Gaetan Nicodeme, 2010. "The 2008 Financial Crisis and Taxation Policy," Taxation Papers 20, Directorate General Taxation and Customs Union, European Commission.
- Vidar Christiansen & Stephen Smith, 2009.
"Externality-correcting taxes and regulation,"
IFS Working Papers
W09/16, Institute for Fiscal Studies.
- John Graham & Jana Raedy & Douglas Shackelford, 2010.
"Research in Accounting for Income Taxes,"
NBER Working Papers
15665, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:63:y:2010:i:4:p:781-806. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (A. Sinan Unur)
If references are entirely missing, you can add them using this form.