Skip to main content
  • Experts
  • Events
  • Briefing Book
  • Resources
  • About
  • Contact
  • Support
  • Fiscal Facts
Twitter
Facebook
Logo Site
  • Topics
    • Individual Taxes
    • Business Taxes
    • Federal Budget and Economy
    • State and Local Issues
    • Campaigns, Proposals, and Reforms
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Features
Research report

Capital Income Taxation and Progressivity in a Global Economy

Rosanne Altshuler, Benjamin H. Harris, Eric Toder
May 19, 2010
Download PDFPrint
Share

Primary tasks

  • Overview(active tab)
  • Full Report
  • Media Mentions

Abstract

Corporate level income taxes encourage the outflow of capital and the shifting of reported profits to other jurisdictions. The outflow of capital shifts some of the burden of the tax from owners of capital to workers. In contrast, individual level taxes on corporate income lower the after-tax return to saving, but have less effect than corporate level taxes on the location of investment. Reversing recent cuts in the tax rates on capital gains and dividends would finance a substantial cut in the corporate tax rate, reduce the outflow of capital, and make the tax system more progressive.

Research Area

Business Taxes
To reuse content from the Tax Policy Center, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

Meet the Experts

  • Rosanne Altshuler
    Professor of Economics, Rutgers University
  • Benjamin H. Harris
  • Eric Toder
    Institute Fellow and Codirector, Tax Policy Center
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
  • Donate Today
  • Topics
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Privacy Policy
  • Newsletters
Twitter
Facebook
  • © Urban Institute, Brookings Institution, and individual authors, 2022.