A change in the tax law that increases investment incentives for new assets may result in excess returns on new investment, causing firm value to increase. Alternatively, because the investment incentives apply only to new investments, the value of existing assets that compete with these...

This paper provides an analysis of the long-run actuarial effects of four significant Social Security reform plans and their effects on representative workers. The reform plans include three plans establishing private accounts: the Social Security Guarantee Plan (proposed by Representatives Bill...

Develops a model of the cost of capital for firms anticipating Alternative Minimum Tax (AMT) liability. Finds that in many circumstances investments are actually favored under the AMT relative to the regular tax system.

Many countries' income tax systems consist of multiple tax schedules that comprise a parallel tax system. For instance, one firm may face a given statutory rate and set of depreciation rules while another firm faces a different tax rate and set of rules. As income varies, a firm may switch from...