The Dual Role of Money and Optimal Financial Taxes

Research output: Working paperDiscussion paperOther research output

218 Downloads (Pure)

Abstract

This paper reconsiders the optimal taxation of money and other financial assets.The optimal tax formulae reflect that money provides liquidity services and is a saving vehicle.In fact, it is useful to reformulate the optimal tax problem to allow for separate taxes on the liquidity and saving functions of money.This reformulation allows one to better understand the original optimal tax problem.The possible optimality of a subsidy on borrowing, for instance, can be explained if it is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as saving vehicles.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages15
Volume1996-99
Publication statusPublished - 1996

Publication series

NameCentER Discussion Paper
Volume1996-99

Fingerprint

Tax
Optimal tax
Liquidity
Optimal taxation
Borrowing
Subsidies
Assets
Financial assets
Savings
Optimality

Keywords

  • money
  • savings
  • taxation

Cite this

Huizinga, H. P. (1996). The Dual Role of Money and Optimal Financial Taxes. (CentER Discussion Paper; Vol. 1996-99). Tilburg: Macroeconomics.
Huizinga, H.P. / The Dual Role of Money and Optimal Financial Taxes. Tilburg : Macroeconomics, 1996. (CentER Discussion Paper).
@techreport{55f2045299bb4292930787e0882035b2,
title = "The Dual Role of Money and Optimal Financial Taxes",
abstract = "This paper reconsiders the optimal taxation of money and other financial assets.The optimal tax formulae reflect that money provides liquidity services and is a saving vehicle.In fact, it is useful to reformulate the optimal tax problem to allow for separate taxes on the liquidity and saving functions of money.This reformulation allows one to better understand the original optimal tax problem.The possible optimality of a subsidy on borrowing, for instance, can be explained if it is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as saving vehicles.",
keywords = "money, savings, taxation",
author = "H.P. Huizinga",
note = "Pagination: 15",
year = "1996",
language = "English",
volume = "1996-99",
series = "CentER Discussion Paper",
publisher = "Macroeconomics",
type = "WorkingPaper",
institution = "Macroeconomics",

}

Huizinga, HP 1996 'The Dual Role of Money and Optimal Financial Taxes' CentER Discussion Paper, vol. 1996-99, Macroeconomics, Tilburg.

The Dual Role of Money and Optimal Financial Taxes. / Huizinga, H.P.

Tilburg : Macroeconomics, 1996. (CentER Discussion Paper; Vol. 1996-99).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - The Dual Role of Money and Optimal Financial Taxes

AU - Huizinga, H.P.

N1 - Pagination: 15

PY - 1996

Y1 - 1996

N2 - This paper reconsiders the optimal taxation of money and other financial assets.The optimal tax formulae reflect that money provides liquidity services and is a saving vehicle.In fact, it is useful to reformulate the optimal tax problem to allow for separate taxes on the liquidity and saving functions of money.This reformulation allows one to better understand the original optimal tax problem.The possible optimality of a subsidy on borrowing, for instance, can be explained if it is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as saving vehicles.

AB - This paper reconsiders the optimal taxation of money and other financial assets.The optimal tax formulae reflect that money provides liquidity services and is a saving vehicle.In fact, it is useful to reformulate the optimal tax problem to allow for separate taxes on the liquidity and saving functions of money.This reformulation allows one to better understand the original optimal tax problem.The possible optimality of a subsidy on borrowing, for instance, can be explained if it is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as saving vehicles.

KW - money

KW - savings

KW - taxation

M3 - Discussion paper

VL - 1996-99

T3 - CentER Discussion Paper

BT - The Dual Role of Money and Optimal Financial Taxes

PB - Macroeconomics

CY - Tilburg

ER -

Huizinga HP. The Dual Role of Money and Optimal Financial Taxes. Tilburg: Macroeconomics. 1996. (CentER Discussion Paper).