Measuring the Tax Burden on Capital and Labor (Cesifo Seminar Series)
Peter Birch Sorensen, Peter Birch SrensenISBN: 0262195038; 9780262195034;
Today's highly complicated tax codes have led economists and policy makers depend on simplified summary measures in order to understand how taxes affect the economy. Studies of the effective tax rate--that is, a measurement of the net amount of tax levied on certain economic activities--provide this sort of descriptive summary. Using estimates of effective tax rates, economists can look for evidence of economic behavior under different tax laws and policy makers can evaluate whether the net outcome is inaccord with their intentions. Globalization, with its accompanying international mobility of capital and labor, has created a new use for estimates of the effective tax rate as policy makers seek to compare tax burdens in one country with those in another. This book provides an overview of the most important methods currently used to measure effective tax rates, highlighting the advantages and disadvantages of the different approaches and illustrating their use with...