Follow the money! Combining household and firm-level evidence to unravel the tax elasticity of dividend
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- handle: 10670/1.hg2jh7
- halshs: halshs-02415470
info:eu-repo/semantics/OpenAccess
Mots-clés
Dividend tax Intertemporal income shifting Firm behavior G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G35 - Payout Policy H - Public Economics/H.H2 - Taxation, Subsidies, and Revenue/H.H2.H24 - Personal Income and Other Nonbusiness Taxes and Subsidies O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and GovernanceSujets proches
Fortunes Household income Personal income Family income Elastic properties Young's modulus Payouts Stock dividends ElasticityCiter ce document
Laurent Bach et al., « Follow the money! Combining household and firm-level evidence to unravel the tax elasticity of dividend », HAL-SHS : économie et finance, ID : 10670/1.hg2jh7
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Résumé
We estimate the tax elasticity of dividends using two recent French re- forms: a hike in the dividend tax rate followed, five years later, by a cut. To follow the cash movements within the balance sheets of households and firms caused by these reforms, we use newly-accessible personal and cor- porate tax registries. Following the tax increase, the elasticity of dividends equals four and there is no shifting towards other personal income cate- gories. We find instead an increase in companies’ spending. After the tax decrease, payouts revert to their initial level, but not enough to offset the amounts received during the high-tax period.