The Resource The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates
The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates
Resource Information
The item The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation.This item is available to borrow from 1 library branch.
Resource Information
The item The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation.
This item is available to borrow from 1 library branch.
- Summary
- To achieve an equal treatment of debt and equity financing, either an additional deduction for equity financing could be granted or the current deduction for interest expenses could be disallowed. A disallowance of interest expenses could be achieved by the interest deduction limitation rules which are already employed in several Member States. Other fundamental tax reforms to address the current debt bias are represented by the Comprehensive Business Income Tax (CBIT), Allowance for Corporate Equity (ACE), Allowance for Corporate Capital (ACC) and Cost of Capital Allowance (COCA). The present study provides an in-depth analysis of the effects of these different reform options on effective tax burdens in the EU28 Member States. Moreover, the study gives guidance to which extent current income tax rates at corporate and personal level would have to be adjusted for a revenue neutral implementation of fundamental tax reforms. On the basis of stylised model computations, this study informs about whether different fundamental tax reforms could, in principle, manage to address the debt bias and promote investment, possibly in a revenue neutral way. The study analyses current interest deduction limitation rules in the 28 Member States and assess the effect of interest deduction limitation rules on effective tax rates. It provides insights on the effects of the fundamental tax reform options on current tax systems. Also, it considers a revenue-neutral implementation of the reforms and possible consequences for the level of investment in the 28 Member States
- Language
- eng
- Extent
- 102 p.
- Isbn
- 9789279626043
- Label
- The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates
- Title
- The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates
- Language
- eng
- Summary
- To achieve an equal treatment of debt and equity financing, either an additional deduction for equity financing could be granted or the current deduction for interest expenses could be disallowed. A disallowance of interest expenses could be achieved by the interest deduction limitation rules which are already employed in several Member States. Other fundamental tax reforms to address the current debt bias are represented by the Comprehensive Business Income Tax (CBIT), Allowance for Corporate Equity (ACE), Allowance for Corporate Capital (ACC) and Cost of Capital Allowance (COCA). The present study provides an in-depth analysis of the effects of these different reform options on effective tax burdens in the EU28 Member States. Moreover, the study gives guidance to which extent current income tax rates at corporate and personal level would have to be adjusted for a revenue neutral implementation of fundamental tax reforms. On the basis of stylised model computations, this study informs about whether different fundamental tax reforms could, in principle, manage to address the debt bias and promote investment, possibly in a revenue neutral way. The study analyses current interest deduction limitation rules in the 28 Member States and assess the effect of interest deduction limitation rules on effective tax rates. It provides insights on the effects of the fundamental tax reform options on current tax systems. Also, it considers a revenue-neutral implementation of the reforms and possible consequences for the level of investment in the 28 Member States
- http://library.link/vocab/creatorName
-
- Spengel, C
- Heckemeyer, J.H
- Nicolay, K
- Bräutigam, R
- Klar, O
- Stutzenberger, K
- Geographic coverage
-
- European Union
- Europe
- Index
- no index present
- Language note
- English
- Literary form
- non fiction
- http://bibfra.me/vocab/lite/organizationName
- Centre For European Economic Research (ZEW) GmbH?UNAUTHORIZED
- Series statement
- Taxation papers: working paper
- Series volume
- 65/2016
- http://library.link/vocab/subjectName
-
- tax reform
- interest deduction
- CBIT
- allowance for corporate equity
- effective tax rate
- Label
- The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates
- Extent
- 102 p.
- Isbn
- 9789279626043
- Isbn Type
- (PDF)
- Issn
- ISSN 1725-3217 (online)
- Label
- The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates
- Extent
- 102 p.
- Isbn
- 9789279626043
- Isbn Type
- (PDF)
- Issn
- ISSN 1725-3217 (online)
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<div class="citation" vocab="http://schema.org/"><i class="fa fa-external-link-square fa-fw"></i> Data from <span resource="http://link.library.ibfd.org/portal/The-effects-of-tax-reforms-to-address-the/KsEv5lRCJZ4/" typeof="Book http://bibfra.me/vocab/lite/Item"><span property="name http://bibfra.me/vocab/lite/label"><a href="http://link.library.ibfd.org/portal/The-effects-of-tax-reforms-to-address-the/KsEv5lRCJZ4/">The effects of tax reforms to address the debt-equity bias on the cost of capital and of effective tax rates</a></span> - <span property="potentialAction" typeOf="OrganizeAction"><span property="agent" typeof="LibrarySystem http://library.link/vocab/LibrarySystem" resource="http://link.library.ibfd.org/"><span property="name http://bibfra.me/vocab/lite/label"><a property="url" href="http://link.library.ibfd.org/">International Bureau of Fiscal Documentation</a></span></span></span></span></div>
