Artikel
Personal Taxation of Capital Income and the Financial Leverage of Firms
Tax competition for capital has led to a trend where many countries levy lower taxes on interest income, often introducing differential taxation between interest and business income. This study analyzes the effect on firm debt usage. We exploit Germany's 2009 tax reform, which introduced a final withholding tax on interest income with a flat rate 18 percentage points below the unchanged tax rate on income from unincorporated businesses, as a quasi-experiment. The results, based on firm-level panel data, indicate that firms increase their leverage when the tax rate on interest income decreases, albeit to a small degree.
- Language
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Englisch
- Bibliographic citation
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Journal: International Tax and Public Finance ; ISSN: 1573-6970 ; Volume: 23 ; Year: 2016 ; Issue: 1 ; Pages: 48-81 ; Berlin: Springer
- Classification
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Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Subject
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Income taxation
Capital taxation
Financial structure
Leverage
Matching
- Event
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Geistige Schöpfung
- (who)
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Fossen, Frank M.
Simmler, Martin
- Event
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Veröffentlichung
- (who)
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Springer
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
- (where)
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Berlin
- (when)
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2016
- DOI
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doi:10.1007/s10797-015-9349-0
- Handle
- Last update
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10.03.2025, 11:46 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Fossen, Frank M.
- Simmler, Martin
- Springer
- ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2016
Other Objects (12)
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Personal Taxation of Capital Income and the Financial Leverage of Firms
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Differential taxation and firms' financial leverage: Evidence from the introduction of a flat tax on interest income
Differential taxation and firms' financial leverage: Evidence from the introduction of a flat tax on interest income
Differential taxation and firms' financial leverage : Evidence from the introduction of a flat tax on interest income
Capital Income Taxation of Asymmetric Countries
Capital Income Taxation and Household Production
Capital income taxation and household saving
Capital Income Taxation of Asymmetric Countries
Human Capital and Optimal Positive Taxation of Capital Income
Personal Taxation of Capital Income and the Financial Leverage of Firms
Reforming capital income taxation
Capital flight and capital income taxation
Capital flight and capital income taxation
Differential taxation and firms' financial leverage: Evidence from the introduction of a flat tax on interest income
Differential taxation and firms' financial leverage: Evidence from the introduction of a flat tax on interest income
Differential taxation and firms' financial leverage : Evidence from the introduction of a flat tax on interest income
Capital Income Taxation of Asymmetric Countries
Capital Income Taxation and Household Production
Capital income taxation and household saving
Capital Income Taxation of Asymmetric Countries