Template-Type: ReDIF-Paper 1.0
Author-Name: Richard Fabling
Author-X-Name-First: Richard	
Author-X-Name-Last: Fabling
Author-Email: richard.fabling@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: Norman Gemmell
Author-X-Name-First: Norman
Author-X-Name-Last: Gemmell
Author-Email: norman.gemmell@vuw.ac.nz
Author-Workplace-Name: Victoria University of Wellington
Author-Name: Richard Kneller
Author-X-Name-First: Richard	
Author-X-Name-Last: Kneller
Author-Email: richard.kneller@nottingham.ac.uk
Author-Workplace-Name: University of Nottingham
Author-Name: Lynda Sanderson
Author-X-Name-First: Lynda
Author-X-Name-Last: Sanderson
Author-Email: lynda.sanderson@treasury.govt.nz
Author-Workplace-Name: The Treasury
Title: Estimating Firm-Level Effective Marginal Tax Rates and the User Cost of Capital in New Zealand
Abstract:  Effective marginal tax rates (EMTRs) can be very different from the statutory rate and vary across firms, reflecting such factors as the extent and nature of taxable deductions (losses, depreciation), asset and ownership structures, and debt/equity financing. We estimate firm-specific EMTRs and related user cost of capital (UCC) measures allowing for shareholder-level taxation using data for 2000-2010 from the Longitudinal Business Database. Examining distributions of various UCC measures we find substantial firm-level heterogeneity, systematic changes as a result of tax reforms between 2004 and 2011, and systematic differences between foreign-owned and domestically-owned firms. Choices among alternative UCC measures make a difference to interpretations.
Length: 51 pages
Creation-Date:  2013-11
File-URL: https://motu-www.motu.org.nz/wpapers/13_14.pdf
Number: 13_14
Classification-JEL: D22; G30; H25
Keywords: User cost of capital, tax reform, EMTR, New Zealand
Handle: RePEc:mtu:wpaper:13_14