Publications

07 Apr 2008
Research & Ideas

The Debate over Taxing Foreign Profits

effectively neutralize tax differences around the world so that firms would make the decisions based on pretax rates of return. More specifically, the United States should,... View Details

Keywords: by Sean Silverthorne

April 2011
Article

Institutional Tax Clienteles and Payout Policy

By: Mihir Desai and Li Jin

This paper employs heterogeneity in institutional shareholder tax characteristics to identify the relation between firm payout policy and tax incentives. Analysis of a panel of firms matched with the tax characteristics of the clients of their institutional... View Details

Keywords: Institutional Investors; Clienteles; Payout Policy; Private Equity; Investment; Taxation; Ownership Stake; Business and Shareholder Relations

Article

Inflation and Taxes in a Growing Economy with Debt and Equity

By: M. Feldstein, Jerry R. Green and Eytan Sheshinski

Our tax system was designed for an economy with little or no inflation. The current paper shows that inflation causes capricious changes in the effective rate of tax on capital income and therefore in the real net rate of return that savers receive. This is not only a... View Details

Keywords: Taxation; Inflation and Deflation; Economy

01 Mar 2011
News

Tax and Grow

spending that cash, the economy could benefit from a significant stimulus that, unlike stimulus measures relating to government spending, would stem from decentralized actors responding to private information and incentives. Consider the potential View Details

Keywords: Mihir A. Desai; Administration of Economic Programs; Government; Corporate, Subsidiary, and Regional Managing Offices; Management

March 2015
Article

Monetary Policy and Long-Term Real Rates

By: Samuel G. Hanson and Jeremy C. Stein

Changes in monetary policy have surprisingly strong effects on forward real rates in the distant future. A 100 basis point increase in the two-year nominal yield on a Federal Open Markets Committee announcement day is associated with a 42 basis point increase in the... View Details

Keywords: Policy; Interest Rates; Economics

September 2019 (Revised May 2020)
Supplement

Keroche (C): The Excise Tax Increase

By: Ramon Casadesus-Masanell and Pippa Tubman Armerding

This case discusses the Kenyan government’s decision to increase excise taxes on wines in 2007. The tax increase would cause an average increase in price of 367% on Keroche’s fortified wines. Meanwhile, Keroche’s competitor EABL had effectively lobbied the government... View Details

Purchase

January 2013
Article

Payout Taxes and the Allocation of Investment

When corporate payout is taxed, internal equity (retained earnings) is cheaper than external equity (share issues). If there are no perfect substitutes for equity finance, payout taxes may therefore have an effect on the investment of firms. High taxes will favor... View Details

Keywords: Taxation; Investment; Equity; Growth and Development Strategy; Resource Allocation

When corporate payout is taxed, internal equity (retained earnings) is cheaper than external equity (share issues). If there are no perfect substitutes for equity finance, payout taxes may therefore have an effect on the investment of firms. High taxes... View Details

October 24, 2018
Article

End the Corporate Health Care Tax

By: Mark R. Kramer and John Pontillo

Imagine if a single piece of legislation could effectively eliminate all U.S. corporate taxes, subsidize hundreds of millions of dollars in new corporate investment, increase the take-home pay of most U.S. employees, ease state and local budgets, and reduce the U.S.... View Details

Keywords: Corporate Taxation; Health Care and Treatment; Insurance; Taxation; Governing Rules, Regulations, and Reforms; United States

Register to Read

2012
Working Paper

Payout Taxes and the Allocation of Investment

When corporate payout is taxed, internal equity (retained earnings) is cheaper than external equity (share issues). If there are no perfect substitutes for equity finance, payout taxes may therefore have an effect on the investment of firms. High taxes will favor... View Details

Keywords: Business Earnings; Equity; Financing and Loans; Investment; Taxation; Business and Shareholder Relations; Motivation and Incentives

1979
Article

Approximating the Efficiency Gain of Tax Reforms

By: Jerry R. Green and Eytan Sheshinski

Proper analysis of tax reform requires evaluation of the welfare effects induced by a change from one tax system to another. We present two methods for estimating these changes using only local information pertaining to an initial equilibrium with distortive taxes. It... View Details

Keywords: Taxation; Governing Rules, Regulations, and Reforms; Change; Analysis

11 Oct 2007
Working Paper Summaries

How Firms Respond to Being Rated

Keywords: by Aaron K. Chatterji & Michael W. Toffel

20 Sep 2011
News

A Taxing Question

proposal: “To reform the current system,” Pozen wrote in Bloomberg Businessweek, “Congress should exempt from US taxes corporate income earned in foreign countries with an effective corporate View Details

Keywords: Roger Thompson; Accounting, Tax, Bookkeeping, Payroll Services; Professional Services

15 Apr 2015
Research & Ideas

Why Americans Voted for an Income Tax

Roosevelt in the 1930s: "With the enactment of the Income Tax Law of 1913, the Federal Government began to apply effectively the widely accepted principle that taxes... View Details

Keywords: by Matthew C. Weinzierl

Mar 2015
Report

Tax Complexity and the Importance of Simplification

Complexity in the tax code has negative redistributive and growth consequences that have only accelerated over time as more and more policy goals are now implemented through the tax system. This testimony... View Details

Article

Modeling dependencies between rating categories and their effects on prediction in a credit risk portfolio