Arbeitspapier
The efficiency loss of capital income taxation under imperfect loss offset provisions
The importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However, the potential deadweight losses owing to imperfect offset has not been fully explored. This paper develops a framework whereby that investigation can be carried out and utilizes numerical simulations to investigate the size of potential losses. Results show that when the government and private sector are equally efficient in handling market risk, welfare losses owing to the absence of offset provisions could be substantial. Under plausible assumptions about attitudes towards risk and time preference, and with a capital income tax rate of forty percent, over sixty cents per dollar of tax revenue raised would be dissipated. In contrast, full loss offset would reduce that loss to approximately fourteen cents.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 2203
- Klassifikation
-
Wirtschaft
Public Economics: General
Taxation and Subsidies: Efficiency; Optimal Taxation
Taxation and Subsidies: Incidence
- Thema
-
capital income taxation
uncertainty
deadweight loss
loss offset provisions
Kapitalertragsteuer
Entscheidung bei Unsicherheit
Wohlfahrtseffekt
Steuerbegünstigung
Steuertheorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ahsan, Syed M.
Tsigaris, Panagiotis
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 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.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ahsan, Syed M.
- Tsigaris, Panagiotis
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2008
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