The Johansson-Samuelson theorem in general equilibrium : a rebuttal

Francesco Menoncin ; Paolo Panteghini

The well-known Johansson-Samuelson Theorem proves that, in partial equilibrium, comprehensive income taxation with a uniform tax rate is neutral in terms of investment decisions, if fiscal depreciation allowances coincide with economic depreciation. In this article we show that this result does not hold in general equilibrium, unless fairly restrictive conditions are met. -- General equilibrium ; investment neutrality ; uniform taxation

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Year of publication:	2008
Other Persons:	Menoncin, Francesco (contributor) ; Panteghini, Paolo (contributor)
Publisher:	München : CESifo
Subject:	Einkommensteuer \| Income tax \| Besteuerungsprinzip \| Taxation principle \| Investitionsrechnung \| Investment appraisal techniques \| Steuervergünstigung \| Tax incentive \| Allgemeines Gleichgewicht \| General equilibrium \| Theorie \| Theory \| Theorem