Taxation, Inflation and the User Cost of Capital in Canada

摘要: This paper analyzes corporate and personal income taxes inflation on the cost of investing in depreciable inventory capital Canada 1963-78. Changes rates tax theoretically have an ambiguous effect capital. Tax depreciation FIFO allowances based historical prices can increase costs with decrease rates. Assuming all is owned by Canadian residents we find gross return to has not changed much over time for types considered. Effective were also measured, these vary considerably type