TY - JOUR
T1 - Up or down? Capital income taxation in the United States and the United Kingdom
AU - Polito, Vito
PY - 2012/3/1
Y1 - 2012/3/1
N2 - Empirical evidence suggests that the Effective Marginal Tax Rate (EMTR) on income from capital has increased considerably in both the United States and the United Kingdom during 1982–2005. The corporate tax literature predicts however that the EMTR should fall over time due to increasing international capital mobility and higher tax competition between governments. This paper argues that this inconsistency can be explained by the fact that EMTRs are currently computed from versions of the neoclassical investment model that omit deferred tax constraints faced by firms investing in both the United States and the United Kingdom.
AB - Empirical evidence suggests that the Effective Marginal Tax Rate (EMTR) on income from capital has increased considerably in both the United States and the United Kingdom during 1982–2005. The corporate tax literature predicts however that the EMTR should fall over time due to increasing international capital mobility and higher tax competition between governments. This paper argues that this inconsistency can be explained by the fact that EMTRs are currently computed from versions of the neoclassical investment model that omit deferred tax constraints faced by firms investing in both the United States and the United Kingdom.
UR - http://www.scopus.com/inward/record.url?scp=84858437104&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1628/001522112X632014
U2 - 10.1628/001522112X632014
DO - 10.1628/001522112X632014
M3 - Article
SN - 1614-0974
VL - 68
SP - 48
EP - 82
JO - Finanzarchiv : Public Finance Analysis
JF - Finanzarchiv : Public Finance Analysis
IS - 1
ER -