Taxation by Regulation: The Case of Financial Intermediaries
Volume: Volume 8, No. 2
Issue: Autumn 1977
Pages: pp. 577-587
Authors: John Tuccillo
Title: Taxation by Regulation: The Case of Financial Intermediaries
Abstract: The connection between the effects of regulation and the impact of taxation has been given increasing attention in recent years. Since both are of a coercive nature, the similarities should be apparent. Posner, in several articles, has drawn out the theoretical connection in a public finance theory of regulation. This paper attempts to apply that theory to the financial services industry by calculating effective rates of federal taxation which include the impact of the myriad regulations affecting this industry. The results indicate that the impact of regulation is uneven, with a greater burden being borne by thrift institutions than by commercial banks.
JEL Classification
Financial Intermediaries (3140)
Fiscal Theory Empirical Studies Illustrating Fiscal Theory (3212)