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View Research by Author - George A. Plesko

Publications


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Changes in the Organization of Business Activity and Implications for Tax Reform (Research Report)
George A. Plesko, Eric Toder

This paper documents the increased role of pass-through entities and the associated decline in use of the taxable corporate form since the Tax Reform Act of 1986 (TRA86) and discusses implications for the design of tax policy. We show how significant reductions in the corporate tax rate, absent changes in the personal tax rate, would reverse the organizational form incentives that have existed since TRA86. If the loss in revenue from a rate reduction is offset by a broadening of the tax base, most business entities, comprising most business income, will face an overall increase in their tax burden.

Posted to Web: February 06, 2014Publication Date: December 31, 2014

Individual and Corporate Capital Gains Are Highly Correlated (Article/Tax Facts)
Leonard E. Burman, George A. Plesko

A perpetual policy debate surrounds the proper taxation of capital gains. One concern is that the tax creates a "lock-in effect." That is, people will hold onto assets longer than they otherwise would in order to avoid the tax. If significant, the lock-in effect would represent an undesirable tax distortion in its own right. It might also mean that cuts in capital gains tax rates could pay for themselves, because the added revenues from induced realizations would offset the loss due to the rate cut.

Posted to Web: October 28, 2002Publication Date: October 28, 2002

 

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