Foreign profits and domestic investment

• 成果类型: Article
• 署名作者: Weichenrieder, AJ
• 署名单位: Leibniz Association; Ifo Institut; University of Munich
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00037-1
• 发表日期: 1998
• 页码: 451-463
• 关键词: corporate tax integration; international taxation; multinational firm; investment policy

摘要

The paper considers investment incentives in corporate tax systems which grant an imputation credit to shareholders when dividends are distributed from domestic sources. An increase in the dividend tax rate which is induced by lowering the shareholders' imputation rate is shown to potentially depress domestic investment. This result is common to 'old view' models which assume that new equity is the marginal source of firms' finance. In this paper, however, the result is derived in a tax capitalization framework, where retentions are the marginal source of finance and dividend tax rates are usually regarded as neutral. (C) 1998 Elsevier Science S.A.