Belgium is characterised by a comparatively high tax wedge. Starting from the end of the 90's there has been a growing concern over the effect of high labour costs on the employment of low skilled workers. One of the most innovative measures implemented by the federal government is the targeted...

There is an on-going debate about tax competition or tax harmonization. The high-tax welfare states want to keep tax rates high so that they can continue to fund their social welfare programs. But they are losing business and investments to lower tax jurisdictions where governments let people...

The Monetary Authority of Singapore (MAS) has a long-standing policy of controlling bank lending in Singapore dollars to nonresidents and to residents who use the funds outside Singapore. While the control may prevent the internationalization of the Singapore dollar and contain exchange rate...

In their effort to finance fiscal deficits at a reasonable cost, governments compete with other users of financial capital. Governments, however, are in the unique position that they are the only debt suppliers that can determine the taxation of debt instruments they issue. Following an overview...

This paper analyzes the broad tax policy issues raised by the use of an economic substance approach (whether through rules or standards) to deter corporate tax shelters, with particular reference to the recent Tax Court decision in Compaq Computer Corp. v. Commissioner. It argues that the basic...

Excess taxation of capital gains is a by-product of inflation in a tax system that uses nominal values as its basis. Studies by Feldstein, Green and Sheshinsky [JPE 1978] and Feldstein and Slemrod [NBER WP 234, 1978] analyze related macroeconomic distortions associated with corporate stock...

Using a corporate valuation model with personal taxation, this study explores an arbitrage opportunity allowing any public corporation classified under the U.S. law as closed-end investment company to systematically earn an abnormal return by giving up the privilege of pass-through income...

This paper examines the rationale for the different tax treatment of gasoline and diesel cars currently observed in Europe. First, we analyse possible justifications for a different tax treatment: pure tax revenue considerations, externality considerations and constraints on the tax instruments...

This study quantifies the possible consequences to stakeholders of reforms to the excise tax on reversions of excess pension assets. Under the U.S. Pension Protection Act of 2006 (PPA), funding in defined benefit plans is likely to improve significantly. Many plans may become overfunded over...