A Superior Hybrid Cash-Flow Tax on Corporations
Download or Read eBook A Superior Hybrid Cash-Flow Tax on Corporations PDF written by Howell H. Zee and published by International Monetary Fund. This book was released on 2006-05 with total page 30 pages. Available in PDF, EPUB and Kindle.
| Author | : Howell H. Zee |
| Publisher | : International Monetary Fund |
| Total Pages | : 30 |
| Release | : 2006-05 |
| ISBN-10 | : UCSD:31822034379453 |
| ISBN-13 | : |
| Rating | : 4/5 (53 Downloads) |
Book Synopsis A Superior Hybrid Cash-Flow Tax on Corporations by : Howell H. Zee
Book excerpt: This paper proposes a new hybrid cash-flow tax on corporations that, on one hand, taxes only excess corporate profits as they accrue, and, on the other hand, treats real and financial transactions neutrally. It is, therefore, a superior tax compared to the cash-flow tax on real transactions that seems to have gained common acceptance. The hybrid tax is a modified version of the cash-flow tax on real and financial transactions combined. The modification involves replacing expensing of fixed assets with normal depreciation allowances, but the undepreciated value of fixed assets is carried forward with interest at the opportunity cost of equity capital.
