Abstract

In this chapter we introduce the idea of neutrality as a superior objective of tax systems. We illustrate common models of neutral taxation and discuss critically how they are and can be implemented in practice. The models discussed are the cash flow tax, the allowance for corporate equity tax and the Johansson/Samuelson tax. After studying this chapter you will know why neutral taxation is essential from an efficient macroeconomic perspective and from an investor’s perspective. You are able to distinguish different types of neutral tax systems and you are able to evaluate their relevance in practice.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.