Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis
Autor(a) principal: | |
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Data de Publicação: | 1989 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/84671 |
Resumo: | The objective of this paper is to study empirically the inter-industry and intertemporal efficiency and distribution effects of integrating corporate and personal income taxes. This paper develops a dynamic general equilibrium model of the U.S. economy. The model accommodates optimal intertemporal investment decisions and optimal allocation of investment across sectors, intertemporal household consumption/leisure decisions, and government deficits and financial crowding out. Simulation results suggest that the elimination of the corporate income tax and its replacement by increased personal income tax rates would yield long-run benefits which are at best 17% of the present value of future consumption and leisure. Also, the average long-run gains are more than three times as large as the average short-run gains: it takes time for the efficiency gains of integration to show up. Finally, integration is shown not to be a Pareto improvement the lowest income groups are worse off after integration. |
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Corporate Tax Integration in the United States: A Dynamic General Equilibrium AnalysisThe objective of this paper is to study empirically the inter-industry and intertemporal efficiency and distribution effects of integrating corporate and personal income taxes. This paper develops a dynamic general equilibrium model of the U.S. economy. The model accommodates optimal intertemporal investment decisions and optimal allocation of investment across sectors, intertemporal household consumption/leisure decisions, and government deficits and financial crowding out. Simulation results suggest that the elimination of the corporate income tax and its replacement by increased personal income tax rates would yield long-run benefits which are at best 17% of the present value of future consumption and leisure. Also, the average long-run gains are more than three times as large as the average short-run gains: it takes time for the efficiency gains of integration to show up. Finally, integration is shown not to be a Pareto improvement the lowest income groups are worse off after integration.Nova SBERUNPereira, Alfredo M.2019-10-18T09:27:15Z1989-071989-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/84671engPereira, Alfredo M., Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis (July, 1989). FEUNL Working Paper Series No. 128info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-10T15:51:21ZPortal AgregadorONG |
dc.title.none.fl_str_mv |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
title |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
spellingShingle |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis Pereira, Alfredo M. |
title_short |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
title_full |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
title_fullStr |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
title_full_unstemmed |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
title_sort |
Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis |
author |
Pereira, Alfredo M. |
author_facet |
Pereira, Alfredo M. |
author_role |
author |
dc.contributor.none.fl_str_mv |
RUN |
dc.contributor.author.fl_str_mv |
Pereira, Alfredo M. |
description |
The objective of this paper is to study empirically the inter-industry and intertemporal efficiency and distribution effects of integrating corporate and personal income taxes. This paper develops a dynamic general equilibrium model of the U.S. economy. The model accommodates optimal intertemporal investment decisions and optimal allocation of investment across sectors, intertemporal household consumption/leisure decisions, and government deficits and financial crowding out. Simulation results suggest that the elimination of the corporate income tax and its replacement by increased personal income tax rates would yield long-run benefits which are at best 17% of the present value of future consumption and leisure. Also, the average long-run gains are more than three times as large as the average short-run gains: it takes time for the efficiency gains of integration to show up. Finally, integration is shown not to be a Pareto improvement the lowest income groups are worse off after integration. |
publishDate |
1989 |
dc.date.none.fl_str_mv |
1989-07 1989-07-01T00:00:00Z 2019-10-18T09:27:15Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/84671 |
url |
http://hdl.handle.net/10362/84671 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Pereira, Alfredo M., Corporate Tax Integration in the United States: A Dynamic General Equilibrium Analysis (July, 1989). FEUNL Working Paper Series No. 128 |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
dc.publisher.none.fl_str_mv |
Nova SBE |
publisher.none.fl_str_mv |
Nova SBE |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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1777302995880378368 |