The Taxation of Income from Capital: A Comparative Study of the U.S., U.K., Sweden and West Germany--Comparisons of Effective Tax Rates--

77 Pages Posted: 16 Jul 2004

See all articles by Mervyn King

Mervyn King

Bank of England; National Bureau of Economic Research (NBER)

Don Fullerton

University of Illinois at Urbana-Champaign - Department of Finance; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: February 1983

Abstract

This working paper presents Chapter 7 of a book to be published for the National Bureau of Economic Research by the University of Chicago Press. The point of the book is to compare taxes on income from capital in four countries,accounting for corporate, personal, and property taxes, and including national,regional, and local level taxes. We describe statutory tax rates and other tax rules in each country and calculate overall effective marginal tax ratesfor different combinations of asset, industry, source of finance, and ownership categories.This chapter compares effective tax rates in the four countries for different assets, industries, sources of finance, and ownership categories.Differences in overall effective tax rates among countries are attributed to differences in rates of inflation, actual depreciation,tax parameters, or differences in the amount of capital in each combination.For each country,we plot the effect of inflation on overall tax rates, and we plot the distribution of different effective tax rates at a given rate of inflation. We further investigate the sensitivity of results to assumptions about inflation and interest rates.

Suggested Citation

King, Mervyn A. and Fullerton, Don, The Taxation of Income from Capital: A Comparative Study of the U.S., U.K., Sweden and West Germany--Comparisons of Effective Tax Rates-- (February 1983). NBER Working Paper No. w1073. Available at SSRN: https://ssrn.com/abstract=304803

Mervyn A. King (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom
44-20-7601-4963 (Phone)
44-20-7601-3047 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Don Fullerton

University of Illinois at Urbana-Champaign - Department of Finance ( email )

1206 South Sixth Street
Champaign, IL 61820
United States
(217) 244-3621 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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