A Proposal for an Elective Tax Benefits Transfer System

40 Pages Posted: 25 Sep 2009  

Ronald Blasi

Georgia State University College of Law

Date Written: September 25, 2009

Abstract

This article proposes an elective tax benefit transfer system to be available to lessors of property they use in their trade or business. It describes why the current linkage of tax benefits to property ownership is economically inefficient, causing it to have several significant disadvantages to the parties and to the economy, as a whole. The article discusses how the current system reduces a firm’s cash flow and reported earnings, diminishes the intended effect of tax incentive legislation, distorts competition and decision making, and inhibits investment in efficient business assets. It is submitted that the proposed system corrects all of the shortcomings, while not violating any tenet of taxation and being consistent with Congressional attempts to limit tax avoidance.

Keywords: tax, tax benefits, lessors, business tax, tax incentives

JEL Classification: K34, K20

Suggested Citation

Blasi, Ronald, A Proposal for an Elective Tax Benefits Transfer System (September 25, 2009). Florida Tax Review, 2010; Georgia State University College of Law, Legal Studies Research Paper No. 2009-20. Available at SSRN: https://ssrn.com/abstract=1478687

Ronald Blasi (Contact Author)

Georgia State University College of Law ( email )

P.O. Box 4037
Atlanta, GA 30302-4037
United States

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