Tax Policy under Nongeometric Physical Depreciation

1986 ◽  
Vol 14 (3) ◽  
pp. 263-288
Author(s):  
Tryphon Kollintzas
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Cost Of Capital ◽  
Tax Structure ◽  
User Cost ◽  
Policy Changes ◽  
Fixed Investment ◽  
Major Implication ◽  
The U.S

This article takes into account most important features of the U.S. corporation income tax structure in the derivation of the user cost of capital from a model that allows for nonstatic expectations and nongeometric physical depreciation. The depreciation component of the derived user cost of capital is a function of the discounted future stream of after-tax replacement costs necessary to maintain indefinitely one unit of capital. This establishes a previously neglected channel through which tax policy may affect the user cost of capital and therefore fixed investment. The major implication of this finding is that tax policy changes that are perceived to be relatively temporary may have a smaller impact on fixed investment than previously thought.

scholarly journals The Structure of the Tax System Versus the Level of Taxation: An Evaluation of the 1986 Act

1992 ◽  
Vol 6 (1) ◽  
pp. 59-68 ◽  
Author(s):  
J. Gregory Ballentine
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Tax Reform ◽  
High Income ◽  
Tax Structure ◽  
Corporate Tax ◽  
Policy Goal ◽  
Tax System ◽  
System Versus ◽  
The Future

In this paper, I assess the 1986 Tax Reform Act relative to the tax system that might have evolved over the several years following 1986 had that particular tax reform not been enacted. Had tax reform not been enacted, I believe that the pattern of steady tax increases, particularly corporate tax increases and tax increases on high-income individuals such as occurred in the 1982 and 1984 tax acts would have continued. I also believe that the 1986 Tax Reform Act introduced an income tax system that will be quite stable; broad changes, in particular changes that raise a large amount of income tax revenues, are unlikely for many years. So I am comparing the tax structure of the 1986 Tax Reform Act to a system that, in part, has an inferior structure, but that provides more revenues. Since I believe that the most important tax policy goal in 1986 and later should have been to raise revenues, not to revise the structure of the tax system, I believe that the 1986 Tax Reform Act was harmful. Tax reform not only did not raise revenues, it has made it more difficult to raise revenues in the future, without providing significant offsetting benefits.

scholarly journals U.S. Tax Policy Towards Foreign Operations Hamper International Competitiveness Of U.S. Multinationals

2011 ◽  
Vol 10 (2) ◽  
pp. 74
Author(s):  
B. Anthony Billings ◽  
William H. Volz
Keyword(s):  
Tax Policy ◽  
Cost Of Capital ◽  
Trade Deficit ◽  
International Competitiveness ◽  
Tax Incentives ◽  
The Pacific ◽  
Industrialized Nations ◽  
Foreign Operations ◽  
The Cost ◽  
The U.S

<span>This article compares U.S. taxation of foreign source income along with domestic tax incentives with that of other major industrialized nations such as the U.K., Canada, Germany, France, and Japan. The paper point out that U.S. tax policy towards the profitability and expansion of foreign operations ignores the economic realities of the 1990s. In addition, revenue-raising concerns of the U.S. tax policy appear to override international competitiveness considerations. The article calls on U.S. tax policymakers to (1) find ways to establish U.S. business presence in the emerging markets of Europe and the Pacific Rim; (2) reverse the declining trend in the U.S. share of exports of technology intensive products; (3) find ways to meaningfully lower the cost of capital to U.S. businesses; and (4) find practical solutions for both the budget and trade deficit.</span>

scholarly journals Where to Retire? The Tax Implications of Geography in Retirement

2015 ◽  
Vol 13 (3) ◽  
pp. 145
Author(s):  
Tim V. Eaton ◽  
Brianne Kellner
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Financial Stability ◽  
Retirement Planning ◽  
Tax Policies ◽  
State Governments ◽  
Policy Changes ◽  
Older Population ◽  
Pension Income ◽  
State Tax

Retirement planning is an issue of growing concern to the nations aging population and state governments as the number of retirees continues to increase each year. Retired individuals and individuals planning for retirement should consider state tax policies, as they vary from state to state, when selecting a retirement location. State governments should also consider making tax policy changes in order to attract the older population. State tax policies could impact a retirees financial stability during retirement. This paper examines the tax implications of geography in retirement and how relocation has the potential to significantly decrease an individuals pension income tax liability.

Economic Effects of 2004-2009 Tax Reforms: Retrospective Analysis

2012 ◽  
pp. 108-123
Author(s):  
E. Penukhina ◽  
D. Belousov ◽  
K. Mikhailenko
Keyword(s):  
Retrospective Analysis ◽  
Tax Policy ◽  
Economic Effects ◽  
Tax Policies ◽  
Policy Changes ◽  
Tax Reforms ◽  
Russian Economy ◽  
Balanced Budget ◽  
Budget System

The article determines, describes and analyzes phases of tax reforms in Russia. We estimate macroeconomic and fiscal effects of various tax policies held during the second and third phases of tax reforms. The necessity of providing a balanced budget system, as well as complex assessment of effects of tax policy changes for the development of the Russian economy is noted.

scholarly journals Taxes and the User Cost of Capital for Owner-Occupied Housing

1982 ◽  
Vol 10 (4) ◽  
pp. 375-393 ◽  
Author(s):  
Patric H. Hendershott ◽  
Joel Slemrod
Keyword(s):  
Cost Of Capital ◽  
User Cost
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