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Non‐Neutrality of the Proposed Resource Super Profits Tax
Author(s) -
Hausman Jerry
Publication year - 2011
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.2011.00643.x
Subject(s) - neutrality , cash flow , resource (disambiguation) , economics , microeconomics , business , cash , monetary economics , industrial organization , finance , computer science , law , computer network , political science
I explain my disagreement with Professor Lund regarding the non‐neutrality of the proposed Resource Super Profits Tax. I find that, when assets are sold by a firm to another firm or when an exit decision is made between shutting down or selling the project, that distortions from the Resource Super Profits Tax occur. Previous analysis of cash flow taxes did not analyse the effects of assets sales under uncertainty.