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A General Accounting Model of Intergovernmental Tax and Benefit Effects on Business

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  • R J Bennett

    (Department of Geography, The London School of Economics and Political Science, Houghton Street, London WC2 2AE, England)

Abstract

The aim in this paper is to present a systematic treatment of the tax and benefit effects of central (or federal), state and local governments on business. A base model is constructed which reduces all tax and benefit regimes to influences on the user costs of capital. This model is specified for the intergovernmental regimes which apply in the USA, the United Kingdom, and West Germany, for the case of sole traders, partnerships, and corporations. Indications of extensions of the model are given for nonmarginal situations, investments at different levels of risk and uncertainty, and the consequences of tax and benefit shifting away from the point of legal incidence. The resulting model provides a general framework for comparison of tax and benefit regimes between states and localities in one country, between state and local governments in one country, or between state and local governments in one country and those in another.

Suggested Citation

  • R J Bennett, 1987. "A General Accounting Model of Intergovernmental Tax and Benefit Effects on Business," Environment and Planning A, , vol. 19(11), pages 1495-1510, November.
    • Handle: RePEc:sae:envira:v:19:y:1987:i:11:p:1495-1510
    DOI: 10.1068/a191495
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    References listed on IDEAS

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    1. Robin Marris & Adrian Wood (ed.), 1971. "The Corporate Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01110-0, September.
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    5. Mervyn A. King & Don Fullerton, 1984. "The United States," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 193-267, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Robert Owen Baldock, 1998. "Ten Years of the Urban Programme 1981-91: The Impact and Implications of its Assistance to Small Businesses," Urban Studies, Urban Studies Journal Limited, vol. 35(11), pages 2063-2083, November.

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