Tax reform and the cost of capital by Dale Weldeau Jorgenson

Cover of: Tax reform and the cost of capital | Dale Weldeau Jorgenson

Published by Clarendon Press, Oxford University Press in Oxford [England], New York .

Written in English

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Places:

  • United States

Subjects:

  • Income tax -- Mathematical models,
  • Corporations -- Taxation -- Mathematical models,
  • Capital -- Mathematical models,
  • Capital investments -- Mathematical models,
  • Corporations -- Taxation -- United States -- Mathematical models

Edition Notes

Book details

Statementby Dale W. Jorgenson and Kun-Young Yun.
ContributionsYun, Kun-Young.
Classifications
LC ClassificationsHJ4631 .J67 1991
The Physical Object
Paginationxvi, 183 p. ;
Number of Pages183
ID Numbers
Open LibraryOL1540956M
ISBN 100198285930
LC Control Number91019630

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Within the past decade, the cost of capital has assumed a central role in tax reform debates through the closely related concept of the marginal effective tax rate. This book provides a comprehensive treatment of the cost of capital approach to tax policy by: Tax Reform and the Cost of Capital: An International Comparison Paperback – November 1, by Dale W.

Jorgenson (Editor), Ralph Landau (Editor) See all 3 Format: Paperback. Tax Reform and the Cost of Capital The tax reform movement that swept the U.S., Great Britain, and most other industrialized nations during the last decade has focused attention on international. The success of the cost of capital approach is due in large part to its ability to assimilate a virtually unlimited amount of descriptive detail on alternative tax policies.

In order to provide guidance to students and practitioners, the book contains a full implementation of the approach for the USA, including an analysis of the alternative proposals that culminated in the highly influential Tax Reform.

The Lindahl Lectures, inaugurated by the University of Uppsala on Monetary and Fiscal Policy, are given every two years in honour of Erik Lindahl, a distinguished Swedish economist.

Tax Reform and the Cost of Capital, the first set of lectures in the series, surveys the new theoretical links between monetary theory and public finance.

Within the past decade, the cost of capital has assumed a central role in tax reform debates through the closely related concept of the marginal effective tax rate. This book provides a comprehensive treatment of the cost of capital approach to tax policy analysis.

Tax Reform and the Cost of Capital, the first set of lectures in the series, surveys the new theoretical links between monetary theory and public finance. The book is divided into three sections: the cost of capital; the cost of elasticities and the costs of reform; and the trade-off between equity and efficiency.

Capital income taxation involves a complicated web of issues. The conceptual framework of the annualized rental cost of capital and the marginal effective tax rate on capital income "facilitates the representation of the economically relevant features of highly complex tax statutes in.

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Learn More Learn More. From valuing individual securities or capital projects to evaluating mergers or acquisitions, estimating the cost of capital is one of the most important decisions that. texts All Books All Texts latest This Just In Smithsonian Libraries FEDLINK (US) Genealogy Lincoln Collection.

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For example, assume a business has $10 million in interest expense. At a 37% income tax rate, the true cost of debt capital is $10 million x (1 – 37%) = $. Jorgenson, Dale W, and R Landau. Tax Reform and the Cost of Capital: An International Comparison. Washington: The Brookings Institution, Cited by: Tax reform and the cost of capital.

[Dale W Jorgenson; Kun-Young Yun] -- This book provides a comprehensive treatment of the cost of capital approach to tax policy analysis.

It contains a full implementation of the approach for the USA, including an analysis of the. Capital Tax Reform and the Real Economy: The Effects of the Dividend Tax Cut by Danny Yagan. Published in volumeis pages of American Economic Review, DecemberAbstract: This paper tests whether the dividend tax cut—one of the largest reforms ever to a US ca.

This book presents a comprehensive treatment of the cost-of-capital approach for analyzing the economic impact of tax policy. This approach has provided an intellectual impetus for reforms of capital income taxation in the United States and around the world.

Inif parents made less than $, jointly and $75, individually, they received a $1, child tax credit for qualified children under the age of 5 The tax reform bill increased that credit to $2, per qualified child and raised the income limits for the credit to $, jointly and $, individually.

6 This means a. This book presents a comprehensive treatment of the cost-of-capital approach for analyzing the economic impact of tax policy. This approach has provided an intellectual impetus for reforms of capital income taxation in the United States and around the world.

The most dramatic example is the Tax Reform Act of in the United States. The Tax Policy Center's Briefing Book.

A citizen’s guide to the fascinating (though often complex) elements of the US tax system. TCJA retained the preferential tax rates on long-term capital gains and qualified dividends and the percent net investment income tax (NIIT).

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Reform of the child tax and qualifying dependents credits 24 Treatment of business income and losses of individuals 25 Tax rates on capital gains and dividends 25 Suspension and reform of certain itemized deductions and income exclusions 25 Deduction for taxes (including state and local taxes) not paid or accrued in a trade or business A study on tax reform, cost of capital, and capital accumulation to guide policy-makers who share the goal of making the capital accumulation more efficient.

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Rather than taking a piecemeal approach, making small changes to provisions of the tax code, comprehensive reform would address the inequities, complexities, and inefficiencies of the entire tax system.

The last comprehensive reform to the US tax system took place inwhen the Tax Reform Act lowered income tax rates and broadened the tax base. Originating book/tax differences resulting in deferred income taxes now being measured at 21% vs.

35% (including the effects of tax gross-ups). Important note: Reversing book/tax differences should not be impacted by tax reform unless the reversal period for non-protected book/tax differences is Size: KB.

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background relating to capital cost recovery under the income tax. 1 This document may be cited as follows: Joint Committee on Taxation, Present Law and Background Relating to Corporate Tax Reform: Issues of Conforming Book and Tax Income and Capital Cost Recovery (JCX), May 8,   How Tax Reform Affects Stock Value The corporate tax reform lowers the cost of repatriating cash overseas from 35 percent to percent.

Spend it on capital expenditure and M&A. Cost of Capital, Investment Decisions and Economic Growth: Implications for Tax Reform I.

Introduction Capital investment is a fundamental driver of economic growth through both macroeconomic and microeconomic channels. The positive macroeconomic results occur by: increasing aggregate demand, replenishing the existing capital stock, raising.

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1, the Tax Reconciliation Act (“the Act”), into law, completing an ambitious overhaul of the United States’ business and personal income tax regimes.

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Slower Growth through “Tax Reform”: The Baucus Capital Cost Recovery Proposal Mar. By Michael Schuyler No. Fellow Abstract The Tax Foundation’s Taxes and Growth Model was used to estimate the long-run effects on the U.S. economy and federal revenue of enacting the capital cost. Eakinomics: Capital Cost Recovery and Tax Reform (Spoiler Alert: Tax Nerd Moment) There is a lot of chatter about the potential for tax reform this year, and some news reports that the White House, House, and Senate are negotiating a single, compromise plan to be released after the August recess.

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