Financing corporate tax cuts with shareholder taxes
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Dosyalar
Tarih
2022-01
Yazarlar
Dergi Başlığı
Dergi ISSN
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Yayıncı
John Wiley and Sons Ltd
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Abstract: We study the aggregate and distributional consequences of replacing corporate profit taxes with shareholder taxes, namely taxes on dividends and capital gains, in a setting with incomplete markets and heterogeneity at both the household and the firm level. The reform yields distributional gains with a large majority of households benefiting. Moreover, if dividend and capital gains are taxed at the same rate, the reform is also efficiency-enhancing and the implied optimal corporate income tax rate is zero. In contrast, an asymmetric tax treatment of dividend and capital gains induces a trade-off between efficiency and distributional concerns that is optimally resolved at a positive optimal corporate tax rate, implying double taxation. Copyright © 2022 The Authors.
Açıklama
Anahtar Kelimeler
Kaynak
Quantitative Economics
WoS Q Değeri
Q1
