Published on 01 Oct 16
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
Alternative details of an allowance for corporate equity (ACE) tax to replace the corporate income tax in Australia are assessed in terms of comparative effects on market outcomes, government revenue, efficiency, equity and simplicity. At the corporate level, alternative measures of the equity capital base, the ACE deduction rate, the ACE tax rate and the treatment of losses are evaluated. In general, the unambiguous superiority of one alternative cannot be established. Also discussed are the status quo versus alternative complementary changes to current arrangements for the taxation of capital income of resident savings, withholding taxes on non-resident returns, and asset taxes. Again, a range of acceptable alternative details for the design of a comprehensive capital income tax reform package, including an ACE, are available.
Professor John Freebairn holds
the Ritchie chair in economics at the
University of Melbourne. He has degrees
from the University of New England and
the University of California, Davis. Prior
to joining the University of Melbourne
in 1996, his preceding career includes
university appointments at the ANU,
LaTrobe and Monash, and periods with
the NSW Department of Agriculture
and the Business Council of Australia.
Professor Freebairn is an applied
microeconomist and economic policy
analyst with current interests in taxation
reform and environmental economics.
- Current at
01 November 2018