TY  - BOOK
AU  - Fullerton,Don
ED  - National Bureau of Economic Research.
TI  - The Indexation of Interest, Depreciation, and Capital Gains: A Model ofInvestment Incentives 
T2  - NBER working paper series
PY  - 1985///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 1985; Hardcopy version available to institutional subscribers
N2  - Despite much recent interest in a consumption tax, the Treasury Department's November 1984 tax plan proposes to adopt carefully coordinated features of a more comprehensive income tax, including the indexation of interest, depreciation, and capital gains.The May 1985 White House proposal would retain some of these indexing provisions.This paper looks at the incentives under alternative tax regimes to make marginal investments in the corporate sector, noncorporate sector, and in owner-occupied housing. It finds that the current system is characterized by effective tax rates that increase with inflation for some assets and decrease with inflation for other assets. Overall rates fall with inflation, and the corporate tax is completely offset by credits, allowances, and deductions. Under the Treasury or White House plans, the corporate tax re-emerges, effective tax rates are considerably more uniform, and the interference of inflation is virtually eliminated
UR  - https://www.nber.org/papers/w1655
UR  - http://dx.doi.org/10.3386/w1655
ER  -