Paul L. Caron
Dean




Sunday, May 3, 2009

Shaviro Presents The 2008-09 Financial Crisis: Implications for Tax Reform in Milan

Daniel N. Shaviro (NYU) presented The 2008-09 Financial Crisis: Implications for Tax Reform (via the wonders of technology, because of a bad back) at the Tax Policy and the Financial Crisis workshop sponsored by the Centre for Research on the Economics of the Public Sector at Bocconi University in Milan, Italy.  From the NYU press release:

Shaviro described a number of defects in the tax system that may have contributed to the financial crisis, including incentives for excessive leverage, tax preferences for home ownership, and the tax rules for derivatives and executive compensation. He also noted that the nonrefundability of corporate losses, while it discourages risk-taking, was poorly designed to deter the sort of bad risk-taking (with a negative expected return beyond the very short-term) that companies such as AIG engaged in. Shaviro concluded that political factors continue to impede desirable tax reforms, especially given that the bad tax rules' contribution to what happened was not demonstrably large, but that lowering corporate tax rates—which many countries are inclined to do in response to global tax competition—may have the desirable secondary effect of reducing tax incentives for excessive corporate leverage.

https://taxprof.typepad.com/taxprof_blog/2009/05/shaviro-presents-.html

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