December 03, 2002

Tracking the historical changes in the tax rate code allows us to make inferences about changes in the corporate capital structure and corporate behavior. This approach helps explain some of the changes in capital structure and market valuation that have taken place in the U.S. during the last 20 years. The analysis also sheds some light on some of the unethical behavior that also took place during the last few years. President Bush has a wonderful opportunity to correct many of the unethical problems while at the same time increase the economy’s efficiency, growth rate and market values. While the details have not been made public, during the campaign he was clear and specific regarding the direction that he wanted to take the economy. His plan includes advancing and making permanent the personal income tax reduction and the elimination of the death tax. There is also the possibly of doing something with either the double taxation of dividends, accelerated depreciation and/or capital gains. If he follows his instincts we could very well get into another virtuous economic cycle.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format