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Bolton, Patrick; Wang, Neng; Chen, Hui - National Bureau of Economic Research (NBER) - 2014

We analyze a model of optimal capital structure and liquidity choice based on a dynamic tradeoff theory for financially constrained firms. In addition to the classical tradeoff between the expected tax advantages of debt and bankruptcy costs, we introduce a cost of external financing for the...

Persistent link: https://www.econbiz.de/10010796667

The Impact of Tax Incentives on the Economic Activity of Entrepreneurs

Harju, Jarkko; Kosonen, Tuomas - National Bureau of Economic Research (NBER) - 2012

Based on existing evidence, we know little about how the taxation of small business owners affects their economic activity. This paper studies the effect of two Finnish tax reforms, in 1997 and 1998, on the effort decisions of the owners of small businesses utilizing both theoretical model and...

Persistent link: https://www.econbiz.de/10010578388

Optimal Taxation in Theory and Practice

Weinzierl, Matthew C; Mankiw, N. Gregory; Yagan, Danny - National Bureau of Economic Research (NBER) - 2009

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened, redistribution has risen with income inequality, and...

Persistent link: https://www.econbiz.de/10005660153

Consumption Taxes: Some Fundamental Transition Issues

Bradford, David F. - National Bureau of Economic Research (NBER) - 1995

A number of tax reform plans under discussion in the United States would replace the existing hybrid income-based system with a consumption-based system. In this paper I use uniform (single-rate) consumption and income taxes: (a) to explain how the problem of taxing 'old savings' or 'old...

Persistent link: https://www.econbiz.de/10005774553

Capital Levies and Transition to a Consumption Tax

Kaplow, Louis - National Bureau of Economic Research (NBER) - 2006

The merits of capital levies depend on the likelihood of repetition, the extent of anticipation, and its effects on distribution. The relevance of these features, which in varying degrees is underdeveloped or underappreciated in pertinent literatures, is elaborated and then considered with...

Persistent link: https://www.econbiz.de/10005830739

Did Firms Substitute Dividends for Share Repurchases after the 2003 Reductions in Shareholder Tax Rates?

Shackelford, Douglas A.; Blouin, Jennifer L.; Raedy, … - National Bureau of Economic Research (NBER) - 2007

This paper tests whether firms altered their dividend and share repurchase policies in response to the 2003 reductions … in shareholder tax rates. We predict that firms substituted dividends for repurchases, because the reduction in dividend … (particularly officers and managers) when setting dividend and share repurchase policies. …

Persistent link: https://www.econbiz.de/10005720020

Tax-Efficient Asset Management: Evidence from Equity Mutual Funds

Sialm, Clemens; Zhang, Hanjiang - National Bureau of Economic Research (NBER) - 2015

Investment taxes have a substantial impact on the performance of taxable mutual fund investors. Mutual funds can reduce the tax burdens of their shareholders by avoiding securities that are heavily taxed and by avoiding realizing capital gains that trigger higher tax burdens to the funds’...

Persistent link: https://www.econbiz.de/10011240568

Mutual Fund Tax Clienteles

Sialm, Clemens; Starks, Laura - National Bureau of Economic Research (NBER) - 2009

Mutual funds are pooled investment vehicles with diverse tax clienteles. Whereas many mutual funds are held primarily by taxable investors, a significant fraction of mutual fund assets are held in tax-qualified retirement accounts. Our paper investigates whether the characteristics, investment...

Persistent link: https://www.econbiz.de/10005059068

Taxation and Household Portfolio Composition: U.S. Evidence from the 1980s and 1990s

Poterba, James; Samwick, Andrew - National Bureau of Economic Research (NBER) - 1999

This paper explores the relationship between household marginal income tax rates, the set of assets that households own, and the portfolio shares accounted for by each of these assets. It analyzes data from the 1983, 1989, 1992, and 1995 Surveys of Consumer Finances and develops a new algorithm...

Persistent link: https://www.econbiz.de/10005575486

Taxes and Mutual Fund Inflows Around Distribution Dates

Poterba, James; Johnson, Woodrow T. - National Bureau of Economic Research (NBER) - 2008

Capital gain distributions by mutual funds generate tax liability for taxable shareholders, thereby reducing their after-tax returns. Taxable investors who are considering purchasing fund shares around distribution dates have an incentive to delay their purchase until after the distribution,...

Persistent link: https://www.econbiz.de/10005575578