Income Tax Reform Implications of the Financial Crisis

Income Tax Reform Implications of the Financial Crisis

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Description

Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the financial crisis, but do not appear to have been among the primary causes. Even without a strong causal link, however, the pre-existing case for tax reform at all these margins arguably is strengthened by the 2008 financial crisis, which suggests that tax rules not only fell short of classic neutrality benchmarks but generally leaned in precisely the wrong direction.

Source Publication

Taxation and the Financial Crisis

Source Editors/Authors

Julian S. Alworth, Giampaolo Arachi

Publication Date

2012

Income Tax Reform Implications of the Financial Crisis

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