WebThe capital structure of a company refers to the mixture of equity and debt finance used by the company to finance its assets. Some companies could be all-equity-financed and have no debt at all, whilst others could have low levels of equity and high levels of debt. The decision on what mixture of equity and debt capital to have is called the ...

Optimal Taxation: From The Encyclopedia of Taxation and Tax …

WebAccording to Chakraborty (2010: 296), the trade-off theory postulates that some form of optimal capital structure should exist pursuant to the balance between the present value of interest tax shields and the cost of bankruptcy. Bankruptcy costs can be classified under direct and indirect costs. WebApr 13, 2015 · The analysis by Piketty, Saez, and Stantcheva finds that the optimal top tax rate is 83 percent. In contrast, the optimal rate using only one elasticity is 57 percent, … east lansing wrrf

Preferred Habitat and the Optimal Maturity Structure of …

WebMar 7, 2024 · ESSAY I: TAX EVASION AND OPTIMAL MIX OF TAXES . INTRODUCTION . Depending on the feasibility of choices, policymakers in both developed and developing economies face the challenging task of striking a delicate balance between the direct and indirect taxes in the face of differential tax compliance. Insofar as taxes cannot WebOct 1, 1999 · Static models of optimal income taxation are of two types: linear and nonlinear (general) income taxes. Linear income tax systems have two parameters, a demogrant and a marginal tax rate. The demogrant can either be a lump-sum grant of money to each individual, in which case it provides a guaranteed income to each individual, or a lump … Optimal tax theory or the theory of optimal taxation is the study of designing and implementing a tax that maximises a social welfare function subject to economic constraints. The social welfare function used is typically a function of individuals' utilities, most commonly some form of utilitarian function, so the … See more Generating a sufficient amount of revenue to finance government is arguably the most important purpose of the tax system. Optimal taxation theory attempts to derive the system of taxation that will achieve the desired revenue and See more Another aspect of optimal taxation is determining income taxes, which can be regressive, flat, or progressive. Labor income tax The theory of … See more • Ad valorem tax • Excess burden of taxation • Hall-Rabushka flat tax • Land value tax See more Frank P. Ramsey (1927) developed a theory for optimal commodity sales taxes in his article "A Contribution to the Theory of Taxation". The … See more William J. Baumol and David F. Bradford in their article "Optimal Departures from Marginal Cost Pricing" also discuss the price distortion taxes cause. They examine the proposition that … See more Taxation of wealth or capital (i.e. stocks, assets) should not be confused with taxation of capital income or income from wealth (i.e. transfers, flows). Taxation of capital in any form: above all financial instruments, assets then property was proposed as most … See more east lansing winery \u0026 brewery tours