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Theoretical framework on the assessment of the tax burden on capital investment

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  • N. Nazukova

Abstract

The article dwells upon one of the prevailing methods of determining the tax burden on fixed asset investments - the effective tax rates. Despite the relevance of studying the impact of taxation on investment, only some empirical research has been accumulated currently, due to the complexities of measuring the effective tax rates. Therefore, this article is dedicated to the algorithm for calculating effective marginal tax rates based on the existing methodologies. The author's calculations are based on the specified methodology, which allows estimating the actual tax burden on business investment. The calculation has important practical significance as it allows determining the profitability of investments financed by different sources.

Suggested Citation

  • N. Nazukova, 2015. "Theoretical framework on the assessment of the tax burden on capital investment," Economy and Forecasting, Valeriy Heyets, issue 2, pages 21-33.
    • Handle: RePEc:eip:journl:y:2015:i:2:p:21-33
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    References listed on IDEAS

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    8. Congressional Budgete Office, 2012. "Effective Marginal Tax Rates for Low- and Moderate-Income Workers," Reports 43709, Congressional Budget Office.
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    10. Barro, Robert J. & Sahasakul, Chaipat, 1983. "Measuring the Average Marginal Tax Rates from Social Security and the Individual Income Tax," Working Papers 29, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    11. 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.
    12. Congressional Budgete Office, 2012. "Effective Marginal Tax Rates for Low- and Moderate-Income Workers," Reports 43709, Congressional Budget Office.
    13. Barro, Robert J & Sahasakul, Chaipat, 1983. "Measuring the Average Marginal Tax Rate from the Individual Income Tax," The Journal of Business, University of Chicago Press, vol. 56(4), pages 419-452, October.
    14. Robert J. Barro & Chaipat Sahasakul, 1983. "Measuring the Average Marginal Tax Rates from Social Security and the Individual Income Tax," University of Chicago - George G. Stigler Center for Study of Economy and State 29, Chicago - Center for Study of Economy and State.
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