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dc.contributor.authorPolito, Vitoen_US
dc.date.accessioned2011-07-14en_US
dc.date.accessioned2012-11-02T14:29:10Z-
dc.date.available2012-11-02T14:29:10Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/65807-
dc.description.abstractEmpirical 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 over the period 1982-2005. This evidence contradicts the corporate tax literature which predicts that the EMTR should instead fall over time as a result of increasing international capital mobility and higher tax competition between governments. This paper argues that this inconsistency is entirely due to the fact that EMTRs on income from capital are currently computed from versions of the neoclassical investment model which do not take into account financial constraints on dividend policy faced by firms investing in both the United States and the United Kingdom. The paper incorporates financial constraints on dividend policy into the analytical framework for the computation of the EMTR and employs the new model to re-calculate time series of the EMTRs in both countries. The new empirical results show that, in contrast to the existing evidence, the EMTR on investment financed by either retained earnings or new equity has indeed declined over time in both countries, while the EMTR on debt-financed investment has remained relatively stable.en_US
dc.language.isoengen_US
dc.publisherCardiff Univ, Cardiff Business School, Economics Section Cardiffen_US
dc.relation.ispartofseriesCardiff Economics Working Papers E2011/13en_US
dc.subject.jelH3en_US
dc.subject.ddc330en_US
dc.subject.keywordcapital income taxationen_US
dc.subject.keyworddividend policyen_US
dc.subject.keywordeffective marginal tax ratesen_US
dc.subject.keywordfinancial constraintsen_US
dc.subject.stwKapitalertragsteueren_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwGrenzsteuersatzen_US
dc.subject.stwDividendeen_US
dc.subject.stwVerschuldungsrestriktionen_US
dc.subject.stwUSAen_US
dc.subject.stwGro├čbritannienen_US
dc.titleUp or down? Capital income taxation in the United States and the United Kingdomen_US
dc.typeWorking Paperen_US
dc.identifier.ppn664238874en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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