TY  - JOUR
AU  - Feldstein,Martin
AU  - Summers,Lawrence H.
TI  - Inflation and the Taxation of Capital Income in the Corporate Sector
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 312
PY  - 1979
Y2  - 1979
UR  - http://www.nber.org/papers/w0312
L1  - http://www.nber.org/papers/w0312.pdf
N1  - Author contact info:
Martin S. Feldstein
President Emeritus
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138-5398
Tel: 617/868-3905
Fax: 617/868-7194
E-Mail: msfeldst@nber.org

Lawrence H. Summers
Harvard Kennedy School of Government
79 JFK Street
Cambridge, MA 02138
Tel: 617/495-9322
Fax: 617/495-0436
E-Mail: lhs@harvard.edu
M1  - published as Martin Feldstein, Lawrence Summers. "Inflation and the Taxation of Capital Income in the Corporate Sector," in Martin Feldstein, "Inflation, Tax Rules, and Capital Formation" University of Chicago Press (1983)

AB  - This detailed examination of the effect of inflation on the taxation of capital used by nonfinancial corporations considers not only the tax paid by the corporations them- selves but also the tax paid by the individuals and institutions that provide capital to the corporate sector. Although corporations deduct nominal interest payments that exceed real interest, the additional taxes that lenders pay slightly exceed the tax saving by corporate borrowers. Our calculations indicate that inflation raised the 1977 tax burden on corporate sector capital income by more than $32 billion, a 50 percent increase in the total tax burden.
ER  -