New York University School of Law
The predecessor to this Article explored the properties of an income tax that uses economic depreciation in measuring capital income. This Article investigates some fundamental properties of an income tax that does not. The predecessor illuminated the equivalence between economic depreciation and accrual taxation, and highlighted the insight, due to Paul Samuelson, that either produces asset values that are independent of their holders' marginal rates, even in a system with graduated rates (and even if those rates vary over time). The current Article explores in qualitative terms the value of "preferential" departures from valuation-neutral taxation.
Theodore S. Sims,
Income Taxation and Asset Valuation (II) The Value of Preferential Taxation
Tax Law Review
Available at: https://scholarship.law.bu.edu/faculty_scholarship/1661