Summary, Description, and Extensions of the Capital Income Effective Tax Rate Literature
(2007) International Taxation Handbook — ISBN: [0750683716], published
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- Authors
- Abstract
- (en) In this paper we summarize the capital income effective tax rate literature. An effective tax rate (ETR) can be defined as a measure intended to estimate the real tax burden on an economic activity. Departing from the cost of capital formulation, we describe the development of forward- and backward-looking marginal and average tax rates. We shed some light on the pros and cons of each approach, and we propose some simple extensions: a marginal effective tax with technological progress, an average effective tax with uncertainty and the entrance of rival firms, and an average effective tax rate on the cost of production.
- Affiliations
Louvain School of Management Accounting & Finance
Citations
Ruiz, F., & Gérard, M. (2007). Summary, Description, and Extensions of the Capital Income Effective Tax Rate Literature. In C. Read, G. Gregoriou (ed.), International Taxation Handbook. Elsevier. https://hdl.handle.net/2078.5/90697