Evaluating the Taxation of Risky Assets
30 Pages Posted: 7 Nov 2002 Last revised: 16 Sep 2022
Date Written: November 1981
Abstract
This paper explores the taxation of risky assets, both from the theoretical perspective of optimal taxation and from the practical one of measuring "the" tax rate on an asset when, as under existing practice, its stochastic returns are subject to differential tax treatment across states of nature. The results suggest that it may be "appropriate" for tax rates to vary systematically with the riskiness of an asset, but that use of the expected tax rate to evaluate the characteristics of any particular tax system may be very misleading.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Jeremy Bulow and Lawrence H. Summers
-
Fundamental Tax Reform in the Netherlands
By Sijbren Cnossen and A. Lans Bovenberg