SEARCH

SEARCH BY CITATION

Keywords:

  • H20
  • capital taxation;
  • risk;
  • efficiency cost of taxation

Existing tax policies have many complex features that make distinctions across goods, factors, and financial structures that distort economic allocations. Their importance is ignored when tax policy is summarized by an “effective” tax rate. In fact, the losses due to asymmetries are often larger than the losses due to the level of taxation.