Preferential Taxation and the Retained Earnings Bias: A Premise-Conditions Theory
Fuente:
Zenodo
Guardado en:
| Autor principal: | |
|---|---|
| Formato: | Recurso digital |
| Publicado: |
Zenodo
2025
|
| Acceso en línea: | |
| Etiquetas: |
Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
|
| _version_ | 1866901755704377344 |
|---|---|
| author | STUDENT, By |
| author_facet | STUDENT, By |
| contents | <p>This paper formalizes a premise-conditions theory explaining why preferential tax incentives for large firms <br>(e.g., investment tax credits, accelerated depreciation) do not translate into domestic capital deepening or <br>wage growth but instead raise retained earnings and shareholder payouts. The mechanism hinges on cross-border <br>return differentials, governance priorities, and tax arbitrage constraints. We derive testable implications <br>and policy diagnostics under which GDP fails to increase while GNI and payouts rise. The model extends the <br>classical user cost of capital framework (Jorgenson, Hall-Jorgenson) by incorporating governance bias and <br>cross-border leakage, and is supported by empirical evidence from the United States, Japan, and Germany. <br>This work contributes to the institutional diagnosis of tax policy and proposes a standardized theoretical <br>framework for evaluating preferential taxation outcomes.</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_17705419 |
| institution | Zenodo |
| language | |
| publishDate | 2025 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | Preferential Taxation and the Retained Earnings Bias: A Premise-Conditions Theory STUDENT, By <p>This paper formalizes a premise-conditions theory explaining why preferential tax incentives for large firms <br>(e.g., investment tax credits, accelerated depreciation) do not translate into domestic capital deepening or <br>wage growth but instead raise retained earnings and shareholder payouts. The mechanism hinges on cross-border <br>return differentials, governance priorities, and tax arbitrage constraints. We derive testable implications <br>and policy diagnostics under which GDP fails to increase while GNI and payouts rise. The model extends the <br>classical user cost of capital framework (Jorgenson, Hall-Jorgenson) by incorporating governance bias and <br>cross-border leakage, and is supported by empirical evidence from the United States, Japan, and Germany. <br>This work contributes to the institutional diagnosis of tax policy and proposes a standardized theoretical <br>framework for evaluating preferential taxation outcomes.</p> |
| title | Preferential Taxation and the Retained Earnings Bias: A Premise-Conditions Theory |
| url | https://doi.org/10.5281/zenodo.17705419 |