Taxes have major costs beyond the collected revenue: deadweight from distorted incentives, compliance and enforcement costs, etc. A simple market mechanism, the Equity Tax, avoids these problems for the trickiest cases: corporate, dividend, and capital gains taxes. It exploits the ability of the share prices to reflect the expected true annual return (as perceived by investors, not as defined b...

The financial crisis of 2007-2008 and the current sovereign debt crisis in Europe have focused attention on the macroeconomic consequences of debt financing. In this paper, we turn our attention to the use of debt finance in the corporate sector and study the generalequilibrium effects of debt finance on investment and growth. More precisely, we analyze underinvestment in equilibrium when marke...

This paper adds to the recent body of literature that uses individual level data to assess the effects of tax policy on self-employment. Specifically, this study uses repeated cross-section data from the 1983, 1989, 1992, 1995, and 1998 Surveys of Consumer Finances (SCF) against the background of the tax reforms of 1986 and 1993 to gauge the influence of taxes on selfemployment. Following the t...

Any wealth tax design needs to resolve the question of who should pay it How wide net be cast? Setting high or low exempt thresholds affects avoidance behaviour and may influence whether one by reference household (and if so how that defined) simply on each individual owns over a certain threshold. Typically, taxes in other countries have not been imposed non-residents except relation real prop...