Decreasing the tax on capital may increase after-tax incomes of capital and labor by reducing the deadweight loss associated with inefficiently low levels of capital investment. This paper identifies five key considerations that impact the effect of decreasing the capital tax rate: the elasticity of substitution between capital and labor, capital’s and labor’s shares of total output, the presen...

This note studies the choice of tax structure in a majority voting model with tax competition. Regions may tax mobile capital or immobile labor. Individuals differ with respect to their relative endowments of labor and capital. Even though a lump sum tax is available, the equilibrium capital tax in a jurisdiction may be positive. In a symmetric equilibrium, this will be true if the median capit...

This draft is quite preliminary so I look forward to our meeting. For me, writing this draft has raised a number of questions about what institutional features of the tax system might explain why the Survey of Consumer Finance data indicates a large stock of unrealized capital gains on actively-managed businesses, but the capital gains on such businesses seem to be relatively modest in the Stat...

We argue that compensating losers is more difficult for immigration than for trade and capital movements. While a tax-cum-subsidy mechanism allows the government to turn the gains from trade into a Pareto improvement, the same is not true for the so-called immigration surplus, if the redistributive mechanism is not allowed to discriminate against migrants. We discuss policy conclusions to be dr...

I quantitatively study the optimal capital income taxation in the general equilibrium overlapping generations model with uninsurable idiosyncratic income shocks and with housing and flnancial assets. Following key characteristics of housing are explicitly modeled: (i) housing is held for the dual purpose of consumption and savings, (ii) housing can be either owned or rented, (iii) if owned, hou...

This paper quantitatively investigates the optimal capital income taxation in the general equilibrium overlapping generations model, which incorporates characteristics of housing and the U.S. preferential tax treatment for owner-occupied housing. Housing tax policy is found to have a substantial effect on how capital income should be taxed. Given the U.S. preferential tax treatment for owner-oc...

  The current study was aimed at investigating The effect of organizational culture on organizational performance with role of mediator intellectual capital of Bandar Abbas Tax Organization via descriptive-correlative analysis. The population under study was consisted of the 215 employees of Bandarabbas Tax Organization. Using simple random sampling, a number of 138 persons were selected as the...

We show the unique form that must be taken by a tax system based entirely on realization accounting to implement a uniform capital income tax, or, equivalently, a uniform wealth tax. This system combines elements of an accrual based capital income tax and a traditional cashflow tax, having many of the attributes of the latter while still imposing a tax burden on marginal capital income. Like th...