- Title Pages
-
Part I Global Warming -
Chapter 1 Climate Change -
Chapter 2 Global Climate Change -
Chapter 3 A New Agenda for Global Warming -
Chapter 4 A Meaningful Second Commitment Period for the Kyoto Protocol -
Part II The International Economy -
Chapter 5 Divergent Views on the Coming Dollar Crisis -
Chapter 6 U.S. Offshoring -
Chapter 7 Advance Market Commitments -
Chapter 8 Should We Still Support Untrammeled International Capital Mobility? Or Are Capital Controls Less Evil Than We Once Believed? -
Part III Economics of the Iraq War -
Chapter 9 The Economic Cost of the Iraq War -
Chapter 10 The High Cost of the Iraq War -
Part IV Fiscal Policy -
Chapter 11 Sense and Nonsense About Federal Deficits and Debt -
Chapter 12 Government Deficits and the Deindustrialization of America -
Part V Social Security -
Chapter 13 Confusions About Social Security -
Chapter 14 The Many Definitions of Social Security Privatization -
Chapter 15 The Virtues of Personal Accounts for Social Security -
Chapter 16 Could Social Security Go Broke? -
Part VI Tax Reform -
Chapter 17 A Broader Perspective on the Tax Reform Debate -
Chapter 18 Tax Reform -
Chapter 19 Taxes on Investment Income Remain Too High and Lead to Multiple Distortions -
Chapter 20 Progressive Consumption Taxation as a Remedy for the U.S. Savings Shortfall -
Part VII Social Policy -
Chapter 21 Was Welfare Reform Successful? -
Chapter 22 Cutting the Safety Net One Strand at a Time -
Chapter 23 The Choose-Your-Charity Tax -
Chapter 24 Should the Government Rebuild New Orleans or Just Give Residents Checks? -
Chapter 25 Does College Still Pay? -
Chapter 26 How to Deal with Terrorism -
Part VIII The Death Penalty -
Chapter 27 The Economics of Capital Punishment -
Chapter 28 On the Economics of Capital Punishment -
Chapter 29 The Death Penalty -
Chapter 30 Reply to Donohue and Wolfers on the Death Penalty and Deterrence -
Chapter 31 Letter -
Chapter 32 Reply -
Part IX Real Estate -
Chapter 33 Long-Term Perspectives on the Current Boom in Home Prices -
Chapter 34 The Menace of an Unchecked Housing Bubble -
Chapter 35 What to Do About Fannie and Freddie? - Index
Taxes on Investment Income Remain Too High and Lead to Multiple Distortions
Taxes on Investment Income Remain Too High and Lead to Multiple Distortions
- Chapter:
- (p.161) Chapter 19 Taxes on Investment Income Remain Too High and Lead to Multiple Distortions
- Source:
- The Economists' Voice
- Author(s):
Martin Feldstein
- Publisher:
- Columbia University Press
Recent tax reforms have significantly reduced the marginal tax rates on saving in the United States. That's the good news. The bad news is that that tax rates on saving and investment remain much higher than they would be in any rational system. Many economists also grossly underestimate the efficiency cost of taxing capital income: they think that if the taxation of capital income does not cause a big reduction in saving. This chapter explains how economists are wrong. It argues that taxes on saving and investment, through the capital gains tax and corporation tax, are too high. This discourages saving for the future overall, and distorts the saving and investment that do occur. Too much capital is directed to noncorporate rather than wealth-creating corporate investment, and corporations are discouraged from paying dividends to their investors.
Keywords: tax reform, tax rates, tax policy, savings rates, investment, capital gains tax, corporation tax, dividends, capital income
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- Title Pages
-
Part I Global Warming -
Chapter 1 Climate Change -
Chapter 2 Global Climate Change -
Chapter 3 A New Agenda for Global Warming -
Chapter 4 A Meaningful Second Commitment Period for the Kyoto Protocol -
Part II The International Economy -
Chapter 5 Divergent Views on the Coming Dollar Crisis -
Chapter 6 U.S. Offshoring -
Chapter 7 Advance Market Commitments -
Chapter 8 Should We Still Support Untrammeled International Capital Mobility? Or Are Capital Controls Less Evil Than We Once Believed? -
Part III Economics of the Iraq War -
Chapter 9 The Economic Cost of the Iraq War -
Chapter 10 The High Cost of the Iraq War -
Part IV Fiscal Policy -
Chapter 11 Sense and Nonsense About Federal Deficits and Debt -
Chapter 12 Government Deficits and the Deindustrialization of America -
Part V Social Security -
Chapter 13 Confusions About Social Security -
Chapter 14 The Many Definitions of Social Security Privatization -
Chapter 15 The Virtues of Personal Accounts for Social Security -
Chapter 16 Could Social Security Go Broke? -
Part VI Tax Reform -
Chapter 17 A Broader Perspective on the Tax Reform Debate -
Chapter 18 Tax Reform -
Chapter 19 Taxes on Investment Income Remain Too High and Lead to Multiple Distortions -
Chapter 20 Progressive Consumption Taxation as a Remedy for the U.S. Savings Shortfall -
Part VII Social Policy -
Chapter 21 Was Welfare Reform Successful? -
Chapter 22 Cutting the Safety Net One Strand at a Time -
Chapter 23 The Choose-Your-Charity Tax -
Chapter 24 Should the Government Rebuild New Orleans or Just Give Residents Checks? -
Chapter 25 Does College Still Pay? -
Chapter 26 How to Deal with Terrorism -
Part VIII The Death Penalty -
Chapter 27 The Economics of Capital Punishment -
Chapter 28 On the Economics of Capital Punishment -
Chapter 29 The Death Penalty -
Chapter 30 Reply to Donohue and Wolfers on the Death Penalty and Deterrence -
Chapter 31 Letter -
Chapter 32 Reply -
Part IX Real Estate -
Chapter 33 Long-Term Perspectives on the Current Boom in Home Prices -
Chapter 34 The Menace of an Unchecked Housing Bubble -
Chapter 35 What to Do About Fannie and Freddie? - Index
