Generalised R-based and S-based taxes under uncertainty

• 成果类型: Article
• 署名作者: Bond, SR; Devereux, MP
• 署名单位: University of Warwick; University of Oxford; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(01)00161-X
• 发表日期: 2003
• 页码: 1291-1311
• 关键词: neutrality; cash flow taxes; uncertainty

摘要

This paper considers the relationship between two general neutral business tax structures, which we label the 'firm tax' and the 'shareholder tax'. The well-known R-based and S-based cash flow taxes, analysed by Meade (1978), are special cases of these two taxes. We demonstrate the neutrality of both taxes in the presence of uncertainty, and characterise the tax rules required in the event of default and wind-up. Our analysis provides the first proof of the neutrality of the S-based cash flow tax and the Allowance for Corporate Equity (ACE) corporation tax under uncertainty. We also discuss implementation and tax avoidance issues. (C) 2001 Elsevier Science B.V. All rights reserved.