Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47574
Authors: 
Knirsch, Deborah
Year of Publication: 
2002
Series/Report no.: 
Tübinger Diskussionsbeiträge 249
Abstract: 
Effective tax rates (ETRs) are designed to indicate the influence of taxes on investments. Existing ETR models fail to generate ETRs that can be compared to a constant yardstick and to other ETRs. This paper develops a new ETR approach based on neutral tax systems. Integration of neutral taxation into the computation of ETRs overcomes the problem of traditional numerical concepts: Comparison of the new ETR and the statutory tax rate as a constant yardstick reveals preferential or discriminatory taxation of investments. Moreover, the comparison of different ETRs displays which investment is distorted to a higher or lower degree.
Subjects: 
Effective Tax Rate
Neutral Tax System
Tax Distortion
Investment
JEL: 
H21
H25
H32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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