Artikel

The timing of optimal capital income tax reforms: The role of intangible capital investment

This paper studies the role of intangible capital investment in the timing of optimal capital income tax reforms. Within an infinitely lived worker-capitalist model as in Judd (J Public Econ 28:59-83, 1985), we consider two different economies: one in which capitalists devote physical investment, management time and intangible capital investment to build capital; and a second one in which capitalists do not need to devote intangible capital investment. We perform a Pareto-improving Ramsey tax reform and compare the optimal paths of corporate and dividend taxes during the transition with and without intangible capital. Without intangible investment, optimal corporate income taxes are set at 100% for 10 years and then fall to 0%, while optimal dividend taxes are set to 78% initially and follow a steep decline to 37% over 10 years. With intangible investment, optimal corporate income taxes are set to - 20% initially and slowly converge toward zero, while dividend income taxes are set to 61% initially and follow a slow decline to 27% over 50 years.

Sprache
Englisch

Erschienen in
Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 10 ; Year: 2019 ; Issue: 3/4 ; Pages: 419-438

Klassifikation
Wirtschaft
Fiscal Policy
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Business Taxes and Subsidies including sales and value-added (VAT)
Thema
Optimal policy
Capital taxes
Intangible investment

Ereignis
Geistige Schöpfung
(wer)
Conesa, Juan Carlos
Domínguez, Begoña
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2019

DOI
doi:10.1007/s13209-019-0199-3
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Conesa, Juan Carlos
  • Domínguez, Begoña
  • Springer

Entstanden

  • 2019

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