Boston University School of Law

 

Preferential Timing and Income Taxation

Theodore S. Sims


Boston University School of Law Working Paper No. 13-31
(July 24, 2013)

Abstract
I show that the value of preferential taxation of asset returns under an income tax that extends to property income is (a) strictly increasing in the taxpayer's marginal rate if the preference takes the form of a preferential rate; but that (b) it attains some maximum at a marginal rate between 0.5 and 1 if the preference takes the form of favorable timing. Disadvantageous timing has exactly the opposite properties.

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Contact Information

Theodore S. Sims

Boston University School of Law
765 Commonwealth Avenue
Boston, MA 02215

Telephone: 617-353-2797

sims@bu.edu

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