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The Tax Advantages of Pension Fund Investments in Bonds

Black, Fischer - 2004

I believe that every tax-paying firm's defined benefit pension fund portfolio should be invested entirely in bonds (or insurance contracts). Although the firm's pension funds are legally distinct from the firm, there is a close tie between the performance of the pension fund investments and the...

Persistent link: https://www.econbiz.de/10012786236

Optimal Bond Trading with Personal Taxes : Implications for Bond Prices and Estimated Tax Brackets and Yield Curves

Constantinides, George M. - 2010

the bond and repurchase, so that future capital losses may be realized short term; and raising the basis through sale of … the bond and repurchase in order to deduct from ordinary income the amortized premium. Because of the interaction of these … substantially from the buy-and-hold policy irrespective of whether the bondholder is a bank, a bond dealer, or an individual. We …

Persistent link: https://www.econbiz.de/10012763034

How Much Equity Does the Government Hold?

Auerbach, Alan J. - 2011

A central point in the recent debate about Social Security in the United States has been the extent to which the federal government should take significant positions in the equity market. But, as this paper shows, the government already has a much more significant, if implicit position in the...

Persistent link: https://www.econbiz.de/10013133104

Taxes and Mutual Fund Inflows Around Distribution Dates

Johnson, Woodrow T. - 2008

Capital gain distributions by mutual funds generate tax liability for taxable shareholders, thereby reducing their after-tax returns. Taxable investors who are considering purchasing fund shares around distribution dates have an incentive to delay their purchase until after the distribution,...

Persistent link: https://www.econbiz.de/10012772361

Capital Taxation in the 21st Century

Auerbach, Alan J. - 2015

In his influential book, Capital in the 21st Century, Thomas Piketty argues forcefully that rising wealth and wealth inequality is an inherent characteristic of capitalist economies and calls for strong policy responses, in particular a substantial wealth tax implemented globally. This paper...

Persistent link: https://www.econbiz.de/10013030055

Dividend Yields and Stock Returns : A Test for Tax Effects

Hess, Patrick J. - 2002

This paper examines the empirical relation between stock returns and dividend yields. Several equilibrium pricing models incorporating differential taxation of dividends and capital gains are nested as systems of time series regressions. Estimates of these models and tests of parameter...

Persistent link: https://www.econbiz.de/10012787433

The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains

Feldstein, Martin S. - 2010

This study provides the first econometric analysis of the effect of taxation on the realization of capital gains. The analysis thus extends and complements the earlier study by Feldstein and Yitzhaki [1978] of the effect of taxation on the selling of corporate stock. The present analysis, using...

Persistent link: https://www.econbiz.de/10012763216

The Rate of Return to Corporate Capital and Factor Shares : New Estimatesusing Revised National Income Accounts and Capital Stock Data

Poterba, James M. - 2010

This paper presents new evidence on the rate of return on tangible assets in the Unitedquot; States, incorporating the recently-revised national accounts as well as new estimates of thequot; replacement cost of the reproducible physical capital stock. The pretax return on capital in thequot;...

Persistent link: https://www.econbiz.de/10012763634

Capital Gains Tax Rules, Tax Loss Trading and Turn-of-The-Year Returns

Poterba, James M. - 2010

This paper investigates the effect of specific features of the U.S. capital gains tax on turn-of-the-year stock returns. It focuses on two tax changes. The first, enacted in 1969, reduced the fraction of long-term losses that were deductible from Adjusted Gross Income from 100 percent to 50...

Persistent link: https://www.econbiz.de/10012763804

The Distribution of Wealth and Fiscal Policy in Economies with Finitely Lived Agents

Benhabib, Jess - 2009

We study the dynamics of the distribution of overlapping generation economy with finitely lived agents and inter-generational transmission of wealth. Financial markets are incomplete, exposing agents to both labor income and capital income risk. We show that the stationary wealth distribution is...

Persistent link: https://www.econbiz.de/10012764838