Taxation and the Financial CrisisJulian S. Alworth, Giampaolo Arachi A PDF version of this book is available for free in open access via www.oup.com/uk as well as the OAPEN Library platform, www.oapen.org. It has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 3.0 license and is part of the OAPEN-UK research project. The financial crisis triggered a global debate on the taxation of the financial sector. A number of international policy initiatives, most notably by the G-20, have called for major changes to the tax treatment of financial institutions and transactions, as well as to working practice within the financial sector. This book examines how tax policies contributed to the financial crisis and whether taxation can play a role in the reform efforts to establish a sounder and safer financial system. It looks at the pros and cons of various tax initiatives including limiting the tax advantages to debt financing; special taxes on the financial sector; and financial transactions taxes. It examines policy concerns such as: the manner in which the financial sector should "pay" for its bailout and the role of accumulated tax losses on financial institutions' behaviour; the role that taxes may play in correcting the systemic externalities associated with "too big to fail"; the types of tax that are most appropriate for financial institutions and markets ("excess profits" versus "financial transactions taxes"); the interaction between taxes and the regulation of the financial sector; and the role of taxation in countercyclical and macroeconomic policies. |
Other editions - View all
Common terms and phrases
accounting assets average bias bonds capital gains tax CDOs CDSs cent of GDP central bank collateralized debt obligations companies compensation cost countries credit default swaps debt management distortions dividends economic effects employee European Commission example exemption expansionary externalities factors favourable financial crisis financial firms financial institutions financial markets financial sector fiscal adjustments fiscal consolidation hedge funds house prices housing market incentives income tax increase interest deductibility interest rates investment investors issues JGBs leverage levied liabilities loans marginal mark-to-market monetary policy mortgage interest OECD payments portfolio potential private equity profits reduce regulation regulatory remuneration revenue bodies risk taking role securities securitization share shareholders short-term stock options stock-option subprime systemic risk tax arbitrage tax havens tax losses tax policy tax rate tax rules tax system tax treatment taxation Tier 1 capital tion trading transaction tax Treasury