Growing inequality in the developed world has led to calls for increasing countries’ top marginal tax rates. Crucially, the optimal top marginal income tax rate depends on people’s tendency to migrate in response to changes in the tax rate. Changes in tax rates and and tax policy must take into account that increases in income tax rates may compel people to leave a country or state. This paper ...

State tax revenues in most countries started to decrease during the recession. Government of Latvia decided to compensate the decline by increasing rates of several taxes including excise tax on strong alcohol. The total increase in 2009 constituted 42% and the rate increased from 896€ to 1 266€ for 100l of absolute alcohol. Since then this has had a negative impact on consumption volumes and t...

In a cross-border takeover, the tax base associated with future capital gains is transferred from target shareholders to acquirer shareholders. Cross-country differences in capital gains tax rates enable us to estimate the discount in the takeover price on account of future capital gains. The estimation suggests that a one percentage point increase in the capital gains tax rate reduces the valu...

Bates et al. extended the "tax-adjusted reSelf-employment taxes, "effective" marginal placement model" by incorporating the interactax rates, and discounting schemes which allow ton between taxes and inflation in their study. for alternative purchase and disposal dates of They found that inflation increased the magnimachinery are incorporated into the traditional tude of costs and generally ext...

Thin capitalization rules have become an important element in the corporate tax systems of developed countries. This paper sets up a model where national and multinational firms choose tax-efficient financial structures and countries compete for multinational firms through statutory tax rates and thin capitalization rules that limit the tax-deductibility of internal debt flows. In a symmetric t...

This paper uses individual tax returns micro data from 1960 to 1997 to analyze whether taxpayers bunch at the kink points of the U.S. income tax schedule generated by jumps in marginal tax rates. Clear evidence of bunching is found only at the threshold of the first tax bracket where tax liability starts. Evidence for other kink points is weak or null. The large jumps in marginal tax rates crea...

The Tax Cuts and Jobs Act (TCJA), effective on December 22, 2017, is the most comprehensive overhaul of U.S. tax code in last 30 years. Historically, when corporate rates are high, interest deduction debt greater, thereby reducing firms’ taxable income. However, with new reforms significantly rates, deductibility no longer as favorable. In this paper, effect TCJA ratios analyzed. authors ...