IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/1997-025.html
   My bibliography  Save this paper

The Tax Treatment of Government Bonds

Author

Listed:
  • Mr. John Norregaard

Abstract

In their effort to finance fiscal deficits at a reasonable cost, governments compete with other users of financial capital. Governments, however, are in the unique position that they are the only debt suppliers that can determine the taxation of debt instruments they issue. Following an overview of the current tax treatment of government bonds in OECD countries, this paper argues that—on purely economic grounds—there are no reasons for exempting interest on government bonds. Administrative difficulties in capturing interest on many other debt instruments in the tax net may, however, provide a rationale for doing so.

Suggested Citation

  • Mr. John Norregaard, 1997. "The Tax Treatment of Government Bonds," IMF Working Papers 1997/025, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1997/025
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=2131
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Berthold U. Wigger, 2007. "A Note on Public Debt, Tax-Exempt Bonds, and Ponzi Games," IMF Working Papers 2007/162, International Monetary Fund.
    2. Wigger, Berthold U., 2009. "A note on public debt, tax-exempt bonds, and Ponzi games," Journal of Macroeconomics, Elsevier, vol. 31(3), pages 492-499, September.
    3. Thomas Luke Spreen & Ed Gerrish, 2022. "Taxes and tax‐exempt bonds: A literature review," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 767-808, September.
    4. Izumi, Ryuichiro, 2020. "Financial stability with sovereign debt," Journal of Financial Stability, Elsevier, vol. 51(C).
    5. Mr. Howell H Zee, 2005. "Personal Income Tax Reform: Concepts, Issues, and Comparative Country Developments," IMF Working Papers 2005/087, International Monetary Fund.

    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:imf:imfwpa:1997/025. 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: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.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.