Chapter

Income Tax Reform Implications of the Financial Crisis

Daniel N. Shaviro

in Taxation and the Financial Crisis

Published in print February 2012 | ISBN: 9780199698165
Published online May 2012 | e-ISBN: 9780191738630 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199698165.003.0007

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Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the financial crisis, but do not appear to have been among the primary causes. Even without a strong causal link, however, the pre-existing case for tax reform at all these margins arguably is strengthened by the 2008 financial crisis, which suggests that tax rules not only fell short of classic neutrality benchmarks but generally leaned in precisely the wrong direction.

Keywords: tax reform; 2008 financial crisis; corporate integration; corporate finance; executive compensation

Chapter.  6844 words. 

Subjects: Financial Markets

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