TITLE

REDUCING DEPRECIATION ALLOWANCES TO FINANCE A LOWER CORPORATE TAX RATE

AUTHOR(S)
Gravelle, Jane G.
PUB. DATE
December 2011
SOURCE
National Tax Journal;Dec2011, Vol. 64 Issue 4, p1039
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper considers the tradeoffs in using revenues from slowing depreciation deductions to lower the corporate tax rate. It estimates how much the rate could be lowered and the resulting effective tax rates on different types of assets. Two issues arise: the overall effect on marginal tax burdens and the challenges of using a provision that largely reflects timing effects to finance a steady state rate reduction.
ACCESSION #
69718871

 

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