an income tax alters the tradeoff between asset liquidity and yield because: (1) high yields from illiquid assets are … the absence of an income tax. These distortions foster an excessively large financial sector, which exists in large part … to create (tax-favored) liquidity. The tax wedge between liquidity and yield also creates clientele effects, in which low …

This paper investigates if there are circumstances where time-varying tax rates could improve welfare and whether such …, the paper highlights the very particular circumstances that need to prevail. With liquidity constraints, a consumption-tax … break is in a better footing to boost consumption and welfare than an income-tax break. A hike in consumption taxes can also …

show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to … reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially … prevailing tax mix is sufficiently skewed towards wage taxation …

, market illiquidity, and impacts on dividend and interest rates are considered. Part of the BAD tax revenue may be fictitious …, due to increased interest payments on government debt. The Brazilian BAD tax (CPMF) experience is evaluated. The empirical … analysis confirms some theoretical predictions. Incidence base over GDP appears to be sensitive to the tax rate, possibly …