The Resource Distinguishing between "normal" and "excess" returns for tax policy

Distinguishing between "normal" and "excess" returns for tax policy

Label
Distinguishing between "normal" and "excess" returns for tax policy
Title
Distinguishing between "normal" and "excess" returns for tax policy
Creator
Subject
Language
eng
Summary
This paper explores the practical challenges tax policy analysts face when trying to apply differential taxation to "normal" and "excess" returns. The distinction between these two elements is being increasingly used in tax policy. The problem is that there is no clear definition for a "normal" return. While it is often equated to a risk-free return, or the return available on a ten-year government bond, many commentators agree that it should incorporate a risk element. The typical rationale for applying differential taxation stems from the desire to achieve neutral taxation, i.e. minimise the real economic responses of taxpayers due to the wedge taxation imposes between before-tax and after-tax returns. A set of important questions are raised for tax policy analysts to consider. Two crucial factors that make the distinction challenging are heterogeneity and uncertainty. Given the potential for unintended consequences, this is an important issue that warrants more discussion and thought
http://library.link/vocab/creatorName
  • Reynolds, H
  • Neubig, T.S
Geographic coverage
International
Index
no index present
Language note
English
Literary form
non fiction
Series statement
OECD Taxation Working Papers
Series volume
no. 28
http://library.link/vocab/subjectName
  • tax policy
  • resource rent (tax)
  • debt capital
  • equity capital
  • intellectual property
Label
Distinguishing between "normal" and "excess" returns for tax policy
Instantiates
Publication
Extent
32 p.
Label
Distinguishing between "normal" and "excess" returns for tax policy
Publication
Extent
32 p.

Library Locations

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      52.37366609999999 4.9336932
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