EFFECTS OF THE 1981 DEPRECIATION REVISIONS ON THE TAXATION OF INCOME FROM BUSINESS CAPITAL

Jane G. Gravelle

92 citations0/0 files storedNational Tax Journal

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Taxation and Avoidance Economic and Fiscal Studies Fiscal Policy and Economic Growth

Abstract

The new depreciation system adopted as part of the Economic Recovery Tax Act of 1981 will produce effective tax rates on new fixed investment estimated at 16 to 21 percent, well below the 46 percent statutory corporate rate and about half the rates estimated under prior law. Effective tax rates on most equipment investments will be negative and the new system tends to increase the differentials in tax rates by asset and by industry. Based on unitary elasticity assumptions, the deadweight loss from the misallocation of capital is estimated at $3.5 to $3.8 billion at 1980 price and income levels, an amount somewhat larger than the $2.7 to $3.3 billion estimated for prior law.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 92 citations exist upstream.

Cited by

1983Which Effective Tax Rate?1991Tax Reform and the Cost of Capital 2004Taxation and Risk-Taking with Multiple Tax Rates 2007How Elastic Is the Corporate Income Tax Base?1987The Incidence and Efficiency Costs of Corporate Taxation when Corporate and Noncorporate Firms Produce the Same Good 1989The Incidence and Efficiency Costs of Corporate Taxation When Corporate and Noncorporate Firms Produce the Same Good 2022Cash on the table? Imperfect take-up of tax incentives and firm investment behavior 1990INVESTMENT INCENTIVES UNDER THE ALTERNATIVE MINIMUM TAX

Imported from OpenAlex (CC0) — nothing here is generated.