Arbeitspapier
Distortive effects of dividend taxation
This paper examines how the distortions caused by dividend taxation depend on whether or not shareholders can recover their original equity injections without being subject to the dividend tax. We point out the alternative assumptions in the literature on this, and we compare two different tax regimes, one where it is impossible for the firm to pay cash to its shareholders that is not taxed as dividends, the other where the shareholders are allowed a tax-free return of the original capital contributed through new issues. Our analysis shows that the regimes imply a substantial difference to our perceptions of the distortive effects of dividend taxation.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2013:16
- Classification
-
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
- Subject
-
Self-employment
dividend taxation
share repurchases
equity trap
cost of capital
nucleus theory
growth path
- Event
-
Geistige Schöpfung
- (who)
-
Lindhe, Tobias
Södersten, Jan
- Event
-
Veröffentlichung
- (who)
-
Uppsala University, Department of Economics
- (where)
-
Uppsala
- (when)
-
2013
- Handle
- URN
-
urn:nbn:se:uu:diva-206751
- Last update
-
10.03.2025, 11:46 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lindhe, Tobias
- Södersten, Jan
- Uppsala University, Department of Economics
Time of origin
- 2013
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