Personal taxation of capital income and the financial leverage of firms

被引：0
作者：
Frank M. Fossen
Martin Simmler
机构：
[1] Freie Universität Berlin,
[2] DIW Berlin,undefined
[3] IZA,undefined
[4] German Institute for Economic Research (DIW Berlin),undefined
[5] Oxford University Centre for Business Taxation,undefined
来源：
International Tax and Public Finance | 2016年 / 23卷
关键词：
Income taxation; Capital taxation; Financial structure; Leverage; Matching; H25; H24; G32;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
Tax competition for capital has led to a trend where many countries levy lower taxes on interest income, often introducing differential taxation between interest and business income. This study analyzes the effect on firm debt usage. We exploit Germany’s 2009 tax reform, which introduced a final withholding tax on interest income with a flat rate 18 percentage points below the unchanged tax rate on income from unincorporated businesses, as a quasi-experiment. The results, based on firm-level panel data, indicate that firms increase their leverage when the tax rate on interest income decreases, albeit to a small degree.
引用
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页码：48 / 81
页数：33
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