Capital gains taxation and corporate investment David A. Weisbach
By: Weisbach, David A
.
Material type: 
ArticlePublisher: 2017Subject(s): PLUSVALIAS | DIVIDENDOS | IMPUESTOS | INVERSIONES EMPRESARIALES | ESTADOS UNIDOS
In:
National tax journal v. 70, n. 3, September 2017, p. 621-642Summary: This study examines the interaction of dividend taxes and capital gains taxes from the sale of stock. Capital gains taxes produce lock-in, increasing the required rate of return for a sale and reinvestment. Using a model of the new view of the corporate tax, this study shows that the lock-in effect when stock is sold determines the optimal dividend payment, increasing the required rate of return for corporate investment.As a result, capital gains taxes on sales of stock increase dividend payments andreduce investment. The new view result, that dividend taxes do not affect investment,however, survives in this setting. The study also considers differences betweendividends and repurchases andsales between heterogeneous investors, both whichalter the tax incentives forsales and distributions.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 233/2017/3-4 (Browse shelf) | Available | OP 233/2017/3-4 |
Browsing IEF Shelves Close shelf browser
Disponible también en línea a través de la Biblioteca del Instituto de Estudios Fiscales. Resumen. Conclusión. Bibliografía.
This study examines the interaction of dividend taxes and capital gains taxes from the sale of stock. Capital gains taxes produce lock-in, increasing the required rate of return for a sale and reinvestment. Using a model of the new view of the corporate tax, this study shows that the lock-in effect when stock is sold determines the optimal dividend payment, increasing the required rate of return for corporate investment.As a result, capital gains taxes on sales of stock increase dividend payments andreduce investment. The new view result, that dividend taxes do not affect investment,however, survives in this setting. The study also considers differences betweendividends and repurchases andsales between heterogeneous investors, both whichalter the tax incentives forsales and distributions.
There are no comments for this item.