Gruevski, Ilija and Gaber, Stevan (2018) Other Tax Models That Alleviate the Burden on Equity Financed Investments: Analysis of the Full Integration Tax System, the Dividend Exemption Tax System and the Flat Tax Rate System. International Journal of Sciences: Basic and Applied Research (IJSBAR), 42 (4). pp. 203-219. ISSN 2307-4531
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Abstract
In our previous articles, we have explained the distortions from the isolated implementation of corporate taxes on company’s investment, a condition that assumes total abstraction of the personal taxes. In this article, we included the personal taxes in our analysis, with intention to explore the investment decision from the shareholder’s point of view as well. With other words,the goal of this serial of articles is to analyze the effects from the integrated implementation of both, the corporate and the personal taxes, a phenomenon commonly referred as “double taxation”. For that purpose, our basic methodology of effective marginal tax rates is once again modified and extended to express all the newly occurred conditions. The theory refers to many varieties of integrated tax systems that carry some capacities to alleviate the burden targeted exclusively on the external equity investments. From the wide literature, in our two previous articles we narrowed our choice to examine the proposals of the OECD, which included the Comprehensive Business Income Tax system (CBIT), the Allowance for Corporate Equity Tax system (ACE), and the Allowance for Shareholder Equity Tax system (ASE). In this article, we focus our attention specifically on the Full Integration Tax system (FIT), the Dividend Exemption Tax system (DET) and the Flat Tax Rate system (FTR).
| Item Type: | Article |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Economics |
| Depositing User: | Stevan Gaber |
| Date Deposited: | 21 Dec 2018 10:24 |
| Last Modified: | 21 Dec 2018 10:24 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/21009 |
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