Working Paper Series,
Research Institute of Industrial Economics

Abstract: The elements of corporate and personal taxation are integrated into a corporate growth model describing a value maximizing firm. The choice parameters of the firm are (1) the growth rate, (2) the debt ratio. (3) the capital-labour ratio. Dividends are determined residually. The corporate tax considered is a flat-rate tax on profits as defined by the tax laws. The personal tax is a linear tax/schedule.

Keywords: Taxation; Corporate growth model

JEL-codes: H21

23 pages, December 1976

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