The Role of Leasing in the Effectiveness of Corporate Tax Policy: Evidence from the 2002 Bonus Depreciation

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Jongsang Park(박종상)
• 간행물 정보: 『한국재정학회 학술대회 논문집』2018년도 경제학 공동학술대회, 1~28쪽, 전체 28쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2018.02.28

영문 초록

Firms can use capital that they either purchase or lease, but these alternatives are treated dif-ferently for tax purposes. This paper derives the demand for leased capital as a function of tax parameters, and uses the model to estimate the responsiveness of leasing to the introduction of bonus depreciation in 2002, finding strong evidence that depreciation allowances influence leasing patterns. Firms that stood to benefit the least from depreciation allowances were the most likely to lease capital after the introduction of bonus depreciation. Specifically, I find that a lessee with a marginal tax rate of zero increases the fraction of leased investment by around 12% point in response to the 2002 bonus depreciation, compared to a fully taxed lessee. This evidence carries implications for the magnitude of deadweight losses due to financing distortions introduced by the corporate tax.

목차

1 Introduction

2 Background

3 Model

4 Empirical Strategy

5 Data Description and Variable Construction

6 Empirical Analysis

7 Deadweight Loss and Policy Implications

8 Conclusion

키워드

Taxes investment leasing bonus depreciation.