The Resource Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
Resource Information
The item Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment 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 Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment 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
- Under traditional formulations, lower capital income tax rates reduce the user cost of capital and stimulate investment. The traditional approach, however, implicitly or explicitly considers a revenue-neutral reduction in capital income taxation. The authors extend the traditional approach by considering a reduction in taxes that generates an increase in the budget deficit; the expanded budget deficit may raise interest rates and the opportunity cost of investment. This provides a mechanism through which tax cuts can raise the cost of capital. Representative calculations show that, even with relatively modest interest rate effects, the net effect of making the Administration's recent tax cuts permanent or a 10 percent reduction in individual income tax rates would be to raise the user cost of capital. Thus, sustained tax cuts can raise the cost of capital and reduce investment
- Language
- eng
- Label
- Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
- Title
- Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
- Language
- eng
- Summary
- Under traditional formulations, lower capital income tax rates reduce the user cost of capital and stimulate investment. The traditional approach, however, implicitly or explicitly considers a revenue-neutral reduction in capital income taxation. The authors extend the traditional approach by considering a reduction in taxes that generates an increase in the budget deficit; the expanded budget deficit may raise interest rates and the opportunity cost of investment. This provides a mechanism through which tax cuts can raise the cost of capital. Representative calculations show that, even with relatively modest interest rate effects, the net effect of making the Administration's recent tax cuts permanent or a 10 percent reduction in individual income tax rates would be to raise the user cost of capital. Thus, sustained tax cuts can raise the cost of capital and reduce investment
- Citation source
- In: National tax journal. - Washington. - Vol. LVIII (2005), no. 3 ; p. 409-426
- http://library.link/vocab/creatorName
-
- Gale, W.G
- Orszag, P.R
- Geographic coverage
- North America
- Language note
- English
- http://library.link/vocab/subjectName
-
- tax policy
- tax rate
- interest
- Label
- Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
- Label
- Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
Embed
Settings
Select options that apply then copy and paste the RDF/HTML data fragment to include in your application
Embed this data in a secure (HTTPS) page:
Layout options:
Include data citation:
<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/Deficits-interest-rates-and-the-user-cost-of/9SihC-U4c0c/" 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/Deficits-interest-rates-and-the-user-cost-of/9SihC-U4c0c/">Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment</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="https://link.library.ibfd.org/">International Bureau of Fiscal Documentation</a></span></span></span></span></div>
Note: Adjust the width and height settings defined in the RDF/HTML code fragment to best match your requirements
Preview
Cite Data - Experimental
Data Citation of the Item Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment
Copy and paste the following RDF/HTML data fragment to cite this resource
<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/Deficits-interest-rates-and-the-user-cost-of/9SihC-U4c0c/" 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/Deficits-interest-rates-and-the-user-cost-of/9SihC-U4c0c/">Deficits, interest rates, and the user cost of capital : a reconsideration of the effects of tax policy on investment</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="https://link.library.ibfd.org/">International Bureau of Fiscal Documentation</a></span></span></span></span></div>
