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dc.contributor.authorKarier, Thomasen_US
dc.date.accessioned2011-12-06en_US
dc.date.accessioned2012-01-06T14:08:16Z-
dc.date.available2012-01-06T14:08:16Z-
dc.date.issued1994en_US
dc.identifier.isbn0941276015en_US
dc.identifier.urihttp://hdl.handle.net/10419/54257-
dc.description.abstractIn this brief, Thomas Karier explores the efficacy of the investment tax credit (ITC) in stimulating private investment spending. He notes that there are three possible channels through which an ITC can act on investment: price, income, and multiplier effects. He finds that ITCs do not appear to have had a significant effect on equipment investment; that the effects of a decline in corporate tax rates (the income effect) were distributed among increased dividends and fewer equity and debt issuances and had little influence on investment; and that capacity utilization and real GDP growth were the only business cycle variables that had a significant effect on equipment investment growth. Based on these findings, Karier concludes that alternatives to tax investment credit programs must be found and pursued. He suggests undertaking a modest program of direct public investment financed by rearranging spending priorities within the budget; a more expansive program could be financed through additional borrowing or through an increase in the corporate income tax.en_US
dc.language.isoengen_US
dc.publisherLevy Economics Inst. Annandale-on-Hudson, NYen_US
dc.relation.ispartofseriesPublic policy brief // Jerome Levy Economics Institute of Bard College 13en_US
dc.subject.ddc330en_US
dc.titleInvestment tax credit reconsidered: Business tax incentives and investmentsen_US
dc.typeResearch Reporten_US
dc.identifier.ppn678422087en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Public Policy Briefs, Levy Economics Institute of Bard College

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