The effective taxes on capital returns differ depending on capital type in the U.S. tax code. This paper uncovers a novel reason for the optimality of differential capital Hollister Clothing Store Locations In Canada taxation. We set up a model with two types of capital – equipments and structures – and equipment-skill complementarity. Under a plausible assumption, we show that it is optimal to tax equipments at a higher rate than structures. In a calibrated model, the optimal tax differential rises from 27 to 40 percentage points over the transition to the new steady state. The welfare gains of optimal differential capital
taxation can be as high as 0.4% of lifetime consumption.
Let <img height="17" border="0" Hollister Women Canada
style="vertical-align:bottom" width="114" alt="View the MathML source" title="View the MathML source" src="http://origin-ars.els-cdn.com/content/image/1-s2.0-S0022314X06002885-si1.gif">k=Q(−2379) and knr,2knr,2 be the maximal unramified 2-extension of k . To show that knr,2/kknr,2/k is finite, Michael Bush gave 8 possible presentations of finite groups for G=Gal(knr,2/k)G=Gal(knr,2/k). However, his methods did not further isolate G. We eliminate 4 of the possibilities, and explain how to isolate G, although carrying out the latter strategy is beyond current technological capabilities. We also discuss related examples.