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dc.contributor.authorAltshuler, Rosanneen_US
dc.contributor.authorHarris, Benjamin H.en_US
dc.contributor.authorToder, Ericen_US
dc.date.accessioned2011-06-15en_US
dc.date.accessioned2012-06-25T12:01:49Z-
dc.date.available2012-06-25T12:01:49Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/59491-
dc.description.abstractThe increase in international capital mobility over the past two decades has put pressure on the tax treatment of corporate equity income. Corporate-level taxes distort investment flows across locations and create opportunities for tax avoidance by shifting income across jurisdictions. Outward flows of capital shift part of the burden of the corporate-level tax on equity income from capital to labor, thereby making its incidence less progressive. Individual-level taxes on corporate equity income lower the after-tax return to savings but have less distorting effects on investment location and are more likely to fall on owners of capital than workers. This logic suggests there may be both efficiency gains and increases in progressivity from shifting taxes on corporate equity income from the corporate to the shareholder level. We estimate the distributional effects of a tax reform that raises shareholder-level taxes on corporate equity income and uses the revenue to cut the corporate tax rate. We find that taxing capital gains and dividends as ordinary income (subject to a maximum 28% rate on long-term capital gains) would finance a cut in the corporate tax rate from 35% to about 26%, assuming no behavioral response. While the distributional effect depends on what one assumes about the incidence of the corporate income tax, our results suggest that even if the corporate income tax were paid entirely by capital income, the reform would make the tax system more progressive.en_US
dc.language.isoengen_US
dc.publisherDep. of Economics, Rutgers, the State Univ. of New Jersey New Brunswick, NJen_US
dc.relation.ispartofseriesWorking Papers, Department of Economics, Rutgers, the State University of New Jersey 2011,22en_US
dc.subject.jelH20en_US
dc.subject.jelH24en_US
dc.subject.jelH25en_US
dc.subject.ddc330en_US
dc.subject.keywordcorporate taxationen_US
dc.subject.keywordindividual taxationen_US
dc.subject.stwKörperschaftsteueren_US
dc.subject.stwSteuerprogressionen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwKapitalmobilitäten_US
dc.subject.stwSteuerreformen_US
dc.subject.stwKapitalertragsteueren_US
dc.subject.stwUSAen_US
dc.titleCapital income taxation and progessivity in a global economyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn662130138en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Department of Economics, Rutgers University

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