ONLINE Seminar in Makroökonomik - Financing Corporate Tax Cuts with Shareholder Taxes
Wann
Montag, 29. November 2021
16 bis 17:15 Uhr
Wo
online
Veranstaltet von
Lehrstuhl für Außenwirtschaftstheorie und Politische Ökonomie
Vortragende Person/Vortragende Personen:
Eva Cárceles-Poveda (Stony Brook University)
Geänderte Anfangszeit aufgrund der Zeitverschiebung!
Financing Corporate Tax Cuts with Shareholder Taxes
(mit Alexis Anagnostopoulos und Orhan Erem Atesagaoglu)
Abstract: We study the aggregate and distributional consequences of replacing corporate profit taxes with shareholder taxes, namely taxes on dividends and capital gains, in a setting with incomplete markets and heterogeneity at both the household and the firm level. The reform yields distributional gains with a large majority of households benefiting. Moreover, if dividend and capital gains are taxed at the same rate, the reform is also effiiency-enhancing and the implied optimal corporate income tax rate is zero. In contrast, an asymmetric tax treatment of dividend and capital gains induces a trade-off between efficiency and distributional concerns that is optimally resolved at a positive optimal corporate tax rate, implying double taxation.