haku: @indexterm CAPITAL INCOME TAX / yhteensä: 20
viite: 16 / 20
| Tekijä: | Uhlig, H. Yanagawa, N. |
| Otsikko: | Increasing the capital income tax may lead to faster growth |
| Lehti: | European Economic Review
1996 : NOV, VOL. 40:8, p. 1521-1540 |
| Asiasana: | GROWTH CAPITAL INCOME TAX GROSS NATIONAL PRODUCT PUBLIC EXPENDITURE |
| Kieli: | eng |
| Tiivistelmä: | According to conventional wisdom in economics, capital income taxes ought to be low. The paper casts doubt on this general conclusion and shows that theory is also able to point in the opposite direction. It is shown in the article that under mild conditions, higher capital income tax lead to faster growth in an overlapping generations economy with endogenous growth. Government expenditures are fixed as a fraction of GNP and are financed with labor income taxes as well as capital income taxes. Since capital income accrues to the old, taxing it reliefs the tax burden on the young and leaves them with more income out of which to save. |
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