Bad taxation: disintermediation and illiquidity in a bank account debits tax model
Autores
Albuquerque, Pedro H.
Orientador
Co-orientadores
Citações na Scopus
Tipo de documento
Working Paper
Data
2006
Resumo
This paper uses a dynamic general equilibrium model to study the economic effects of bank account debits (BAD) taxation. Australia and various Latin American countries have levied or levy BAD taxes. Aspects such as financial disintermediation, market illiquidity, and impacts on dividend and interest rates are considered. Part of the BAD tax revenue may be fictitious, due to increased interest payments on government debt. The Brazilian BAD tax (CPMF) experience is evaluated. The empirical analysis confirms some theoretical predictions. Incidence base over GDP appears to be sensitive to the tax rate, possibly engendering a Laffer curve. The tax may also cause real interest rates to increase. Furthermore, the deadweight losses are relatively large, even if revenues are small. The theoretical and empirical results suggest that the BAD tax is not adequate for revenue collection.
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Titulo de periódico
International Tax and Public Finance
URL da fonte
Título de Livro
URL na Scopus
Idioma
Inglês