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Capital Income Taxes and Economic Performance

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  • Steven M. Fazzari

Abstract

Tax reform that reduces tax rates on capital income, no matter how successful it is in reducing the user cost of capital, will have at best minimal effects on capital formation and output and therefore on the growth of the U.S. economy.

Suggested Citation

  • Steven M. Fazzari, "undated". "Capital Income Taxes and Economic Performance," Economics Policy Note Archive 99-7, Levy Economics Institute.
    • Handle: RePEc:lev:levypn:99-7
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    References listed on IDEAS

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    1. Fazzari, Steven M & Hubbard, R Glenn & Petersen, Bruce C, 1988. "Investment, Financing Decisions, and Tax Policy," American Economic Review, American Economic Association, vol. 78(2), pages 200-205, May.
    2. Talan Iscan, 1998. "Trade liberalisation and productivity: A panel study of the Mexican manufacturing industry," Journal of Development Studies, Taylor & Francis Journals, vol. 34(5), pages 123-148.
    3. Imrohoroglu, Ayse & Imrohoroglu, Selahattin & Joines, Douglas H, 1998. "The Effect of Tax-Favored Retirement Accounts on Capital Accumulation," American Economic Review, American Economic Association, vol. 88(4), pages 749-768, September.
    4. Jason G. Cummins & Kevin A. Hassett & R. Glenn Hubbard, 1994. "A Reconsideration of Investment Behavior Using Tax Reforms as Natural Experiments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 1-74.
    5. Razin, Assaf & Yuen, Chi-Wa, 1996. "Capital income taxation and long-run growth: New perspectives," Journal of Public Economics, Elsevier, vol. 59(2), pages 239-263, February.
    6. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    7. Chirinko, Robert S. & Fazzari, Steven M. & Meyer, Andrew P., 1999. "How responsive is business capital formation to its user cost?: An exploration with micro data," Journal of Public Economics, Elsevier, vol. 74(1), pages 53-80, October.
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    Cited by:

    1. M Grote & K Fletcher, 2000. "Capital Gains Tax in South Africa*(1)," South African Journal of Economics, Economic Society of South Africa, vol. 68(4), pages 343-347, December.

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