@techreport{Menoncin2009Retrospective,
abstract = {In this article, we analyze Auerbach's (1991) proposal of a retrospective capital gains tax, which is equivalent to an accrual tax on an ex-ante basis. Using a continuous-time model with stochastic interest rates, we prove that equivalence holds even if the risk-free asset return is correlated with other risky assets' returns. However, equivalence fails to hold on an ex-post basis. In other words, if an investor faces a huge gain (loss), the effective tax rate under this system is less (higher) than that what would be due under an accrual tax system. This leads to a fairness problem. For this reason, we also find the conditions that ensure equivalence on an ex-post basis. As will be shown, however, ex-post equivalence can be achieved only if a huge amount of information is available, making its implementation a hard task.},
address = {M\"{u}nchen},
author = {Francesco Menoncin and Paolo M. Panteghini},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H25; H32; 330; capital gains; risk; taxation; Wertzuwachssteuer; Steuererhebung; Kapitalertrag; Risiko; Theorie},
language = {eng},
number = {2674},
publisher = {CESifo},
title = {Retrospective capital gains taxation in the real world},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/30660},
year = {2009}
}
