Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Fiscal Affairs Department.
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| ISBN: | 1283562219
9781283562218
1451893698
9781451893694
1462336922
9781462336920
1452773491
9781452773490
9786613874665
6613874663
9781451973969
1451973969
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| Notes: | Includes bibliographical references (pages 31-32).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | The current system of corporate taxation in the United States treats debt and equity financing of firms differently. Interest payments, unlike dividends, are deducted from the corporate income tax and, therefore, enjoy a tax advantage. Firms with higher corporate tax rates have an incentive to increase leverage. Although most firms face the same statutory tax rate, effective corporate tax rates may vary greatly because of differences across firms in the ability to shield profits from the corporate tax. 2 A firm with higher investment tax credits, accelerated depreciation allowances, or tax loss carryforwards face lower effective corporate tax rates than an identical firm without these nondebt tax shields.
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| Other form: | Print version: Gropp, Reint. Effect of expected effective corporate tax rates on incremental financing decisions. [Washington, D.C.] : International Monetary Fund, Fiscal Affairs Dept., ©1997
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| Standard no.: | 10.5089/9781451893694.001
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