Coverart for item
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

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
Creator
Subject
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
Instantiates
Publication
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
Publication
Extent
102 p.
Isbn
9789279626043
Isbn Type
(PDF)
Issn
ISSN 1725-3217 (online)

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
Processing Feedback ...