IDEAS home Printed from https://ideas.repec.org/p/cbo/wpaper/57429.html
   My bibliography  Save this paper

CBO’s Model for Estimating the Effect That Federal Taxes Have on Capital Income From New Investment: Working Paper 2022-01

Author

Listed:
  • Paul Burnham
  • Dorian Carloni

Abstract

The Congressional Budget Office has developed a model to estimate the effect that federal taxes have on capital income from new investment; it uses that model to help estimate how changes in tax law would affect the economy. The model follows a well-established analytical framework that involves calculating the difference between the before-tax rate of return required to justify an investment and the after-tax rate of return demanded by savers (that is, individuals purchasing the equity and debt issued by businesses). The calculation of the before-tax rate of return is

Suggested Citation

  • Paul Burnham & Dorian Carloni, 2022. "CBO’s Model for Estimating the Effect That Federal Taxes Have on Capital Income From New Investment: Working Paper 2022-01," Working Papers 57429, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:57429
    as

    Download full text from publisher

    File URL: https://www.cbo.gov/system/files/2022-02/57429-CapTax.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbo:wpaper:57429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cbogvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.