National Tax Journal articles from June 1994

National Tax Journal archives from June 1994

How did firms adjust their tax-deductible activities in response to the Economic Recovery Tax Act of 1981?
June 1, 1994... INTRODUCTION DeAngelo and Masulis (1980) show that as a firm's investment tax shields increase, its demand for debt tax shields declines, due to the higher after-tax cost of debt brought about by an increased probability of tax shield...

Decomposing the Gini coefficient to reveal the vertical, horizontal, and reranking effects of income taxation.
June 1, 1994... INTRODUCTION Taxes and tax systems are judged on three essential features: how much revenue they raise; how much excess burden or distortion they create; and whether or not they meet the accepted criteria of equity and fairness. We...

Is the property tax a benefit tax? The case of rental housing.
June 1, 1994... INTRODUCTION Scholars disagree about whether a local property tax is a benefit tax, in the sense that the tax burden coincides with benefits from the services it finances. This debate is important because a benefit tax causes no...

Effective federal individual income tax functions: an exploratory empirical analysis.
June 1, 1994... ". . . a tax law is a mapping from a vector whose elements are the income characteristics of the individual (wage income, dividends, capital gains, and all the other items in the income tax form) to tax liabilities. It is supposed to be a well...

Residential property tax capitalization: discount rate evidence from California.
June 1, 1994... INTRODUCTION The empirical literature on the effects of property taxes on housing values finds that taxes are capitalized to some degree. The degree of capitalization, to a large extent, depends upon the rate used to discount the tax...

Incentive effects of foreign tax credits on multinational corporations.
June 1, 1994... INTRODUCTION American multinationals are taxed on the basis of their worldwide income. This "residence" approach creates the potential for the double taxation of foreign-source income. For this reason, the United States has adopted a...

Tax subsidies to saving for home purchase: evidence from Canadian RHOSPs. (Registered Home Ownership Savings Plans)
June 1, 1994... INTRODUCTION Government provision of special tax incentives for home ownership has a long and venerable tradition both in the United States and in other countries. Italy, Japan, Sweden, the United Kingdom, and the United States are...

The optimal state tax portfolio model: an extension. (New York)
June 1, 1994... INTRODUCTION In the last decade, several studies (White, 1983; Misiolek and Perdue, 1987; Perdue and Weed, 1991) have developed and refined the state tax portfolio model. These studies focus exclusively on the trade-off between tax...

"Economics in the policy process": a comment. (response to Alan J. Auerbach and R. Glenn Hubbard, National Tax Journal, vol. 46, p. 519 and 527, December 1993)
June 1, 1994... The symposium on economics in the policy process is a welcome feature of the December 1993 issue of the National Tax Journal. The articles by Auerbach and Hubbard, based on their experience as temporary occupants of senior positions in...

Tax issues in health care reform.
June 1, 1994... The debate about the role of taxation in health care reform revolves around four broad questions. I shall concentrate on two, comment briefly on another, and ignore the fourth. The first two issues, to which I shall return presently, concern...

Transfers, taxes, and welfare reform.
June 1, 1994... In 1973, Henry Aaron posed a deceptively simple question as the title of his Brookings monograph, Why is Welfare So Hard to Reform? (Aaron, 1973). At that time, the Nixon Administration was in its third year of efforts to gain Congressional...

Implications of existing tax policy for cross-border activity between the United States and Mexico after NAFTA.
June 1, 1994... During the next few years, trade and cross-border investments are likely to increase substantially between Mexico and the United States. This increase in activity will arise only in part from the drop in tariff rates negotiated as part of the...

Tax Policy in OECD Countries: Choices and Conflicts.
June 1, 1994... By KEN MESSERE. Amsterdam: IBFD Publications BV, 1993. Pp. 510. When the former Head of the Fiscal Affairs Division of the Organisation for Economic Cooperation and Development (OECD) writes a book on tax policy in OECD countries, that book...

Studies in International Taxation.
June 1, 1994... Edited by ALBERTO GIOVANNINI, R. GLENN HUBBARD, and JOEL SLEMROD. Chicago: University of Chicago Press, 1993. Pp. 321. This book contains eight papers commissioned by the editors and presented at an NBER conference in September 1991. The...

Money, Time and Politics: Investment Tax Subsidies and American Democracy.
June 1, 1994... This book is an exploration of the politics of tax policy with particular reference to incentives for business investment. The basic argument is articulated in radical political economy terminology, such as the "distributional class struggle,"...