Whitehouse, Edward (1999): The tax treatment of funded pensions.
Download (170kB) | Preview
Pension funds are an important part of private savings flows, the main supplier of capital to industry and play a large and growing role in providing retirement incomes in countries with mature funded pension systems. Reforms which increase the emphasis on privately managed, funded pensions must get the tax treatment right. This paper sets out the options for taxing pensions, and the arguments between them. The tax treatment in 35 different countries is described and summarized in an empirical measure: the marginal effective tax rate. Other data assess the importance of pension funds and tax incentives in aggregate, drawing on national and international sources.
|Item Type:||MPRA Paper|
|Original Title:||The tax treatment of funded pensions|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Household Saving; Personal Finance
|Depositing User:||Edward Whitehouse|
|Date Deposited:||21. Mar 2009 01:29|
|Last Modified:||13. Feb 2013 18:35|
Andrews, A.H. (1974), ‘A consumption-type or cash-flow personal income tax’, Harvard Law Review, vol. 87.
Argentina, Superintendencia de Administradoras de Fondos de Jubilaciones y Pensiones (1997), El Regimen de Captializacion a tres anos de la Reforma Previsional, Buenos Aires.
Australia, Department of the Treasury (1994), Tax Expenditures Statement, Australian Government Printing Office, Canberra.
Banks, J., Dilnot, A.W. and Tanner, S. (1997), Taxing Household Saving, Institute for Fiscal Studies, London.
Belgium, Chambre des Représentants (1992), ‘Inventaire 1992 des exonerations, abattements et reductions qui influencent les recettes de l’état’, annex to Budget des Voies et Moyens, Bruxelles.
Boadway, R. and Wilasdin, D. (1994), ‘Taxation and savings: a survey’, Fiscal Studies, vol. 15, no. 3, pp. 19-63.
Booth, P. and Cooper, D. (1999), 'The tax treatment of pensions', mimeo., Bank of England, London.
Börsch-Supan, A. (1998), ‘Retirement income: level, risk and substitution among income components’, Ageing Working Paper no. 3.7, OECD, Paris.
Bovenberg, A.L. (1993), ‘The tax treatment of private pensions: the case of the Netherlands’, V SB-CentER Progress Report no. 8, Tilburg University.
Brancato, C.K. (1994), The Brancato Report on Institutional Investment, the Conference Board, Seminar on Trends in U.S. Institutional Investment and Implications for Corporate Governance, New York.
Canada, Department of Finance (1993), Personal and Corporate Income Tax Expenditures, Ottawa.
Carroll, C. and Summers, L.H. (1987), ‘Why have private savings rates in the United States and Canada diverged?’, Journal of Monetary Economics, vol. 20, pp. 249-280.
Chennells, L. and Griffith, R. (1997), Taxing Profits in a Changing World, Institute for Fiscal Studies, London.
Davis, E.P. (1995), Pension Funds: Retirement-Income Security and Capital Markets: An International Perspective, Clarendon Press, Oxford.
Diamond, P. (1977), ‘A framework for social security analysis’, Journal of Public Economics, vol. 8, pp. 275-298.
Dilnot, A.W. (1992), ‘Taxation of private pensions: costs and consequences’, in OECD, Private Pensions and Public Policy, Paris.
Dilnot, A.W. (1996a), ‘The taxation of private pensions’, in Bodie Z., Mitchell, O.S. and Turner, J.A. (eds), Securing Employer-Based Pensions: An International Perspective, Pensions Research Council, University of Pennsylvania Press.
Dilnot, A.W. (1996b), ‘Taxing pensions in Hungary’, mimeo., Institute for Fiscal Studies, London.
Dilnot, A.W. , Disney, R.F., Johnson, P.G. and Whitehouse, E.R. (1994), Pensions Policy in the UK: An Economic Analysis, Institute for Fiscal Studies, London.
Dilnot, A.W. and Johnson, P.G. (1993a), The Taxation of Private Pensions, Institute for Fiscal Studies, London.
Dilnot, A.W. and Johnson, P.G. (1993b), ‘Tax expenditures: the case of occupational pensions’, Fiscal Studies, vol. 14, no. 1, pp. 42-56.
Disney, R.F. and Whitehouse, E.R. (1992a), The Personal Pensions Stampede, Institute for Fiscal Studies, London.
Disney, R.F. and Whitehouse, E.R. (1992b), ‘Personal pensions and the review of the contracting out terms’, Fiscal Studies, vol. 13, no. 1, pp. 38-53.
Disney, R.F. and Whitehouse, E.R. (1994), ‘Choice of private pension and pension benefits in Britain’, Working Paper no. 94/2, Institute for Fiscal Studies, London.
Disney, R.F. and Whitehouse, E.R. (1996), ‘What are pension plan entitlements worth in Britain?’, Economica, vol. 63, pp. 213-238.
Engen, E., Gale, W.G. and Scholz, J.K. (1994), ‘Do savings incentives work?’, Brookings Papers on Economic Activity, vol. 1, pp. 85-151.
Feenberg, D. and Skinner, J. (1989), ‘Sources of IRA saving’, in Summers, L.H. (ed.) Tax Policy and the Economy 3, MIT Press, Cambridge, Massachusetts.
Fitzgerald, V.W. and Harper, I.R. (1992), ‘Superannuation — preferred or “level playing field”? Implications for saving and the financial system’, Australian Tax Forum, vol. 9, no. 2.
Gora, M. and Rutkowski, M. (1998), ‘The quest for pension reform: Poland’s Security through Diversity, Social Protection Discussion Paper no. 9815, World Bank, Washington, D.C.
Gravelle, J.G. (1989), ‘Capitals gains tax, IRAs and savings’, Congressional research Service, Library of Congress, Washington, D.C.
Gravelle, J.G. (1991), ‘Do individual retirement accounts increase savings?’, Journal of Economic Perspectives, vol. 5, no. 2, pp. 133-48.
Gylfason, T. (1993), ‘Optimal saving, interest rates and endogenous growth’, Scandinavian Journal of Economics, vol. 95, no. 4, pp. 517-533.
Griffith, R. (1996), 'A note on the taxation of capital income in the Czech Republic and Poland', Fiscal Studies, vol. 17, no. 3, pp. 91-103.
Hamilton, J.H. (1987), ‘Taxation, saving and portfolio choice in a continuous time model’, Public Finance, vol. 42, no. 2, pp. 264-284.
Hamilton, R. and Whalley, J. (1985), ‘Tax treatment of housing in a dynamic sequenced general equilibrium model’, Journal of Public Economics, vol. 27, no. 2, pp. 3-23.
Heady, C. (2993), ‘Optimal taxation as a guide to tax policy: a survey’, Fiscal Studies, vol. 14, no. 1, pp.15-41.
Hills, J. (1984), Savings and Fiscal Privilege, Institute for Fiscal Studies, London.
Hoffman, E. and Lambert, S. (1993), ‘The 1993 share register survey’, Economic Trends, October, pp. 124-9.
Institute for Fiscal Studies Capital Taxes Group (1992), Equity for Companies: A Corporation Tax for the 1990s, Institute for Fiscal Studies, London.
Institute for Fiscal Studies Capital Taxes Group (1994), Setting Savings Free: Proposals for the Taxation of Savings and Profits, Institute for Fiscal Studies, London.
Johnson, P.G. (1992), ‘The taxation of occupational and private pensions in Europe: the theory and the practice’, in Mortensen, J. (ed.), The Future of Pensions in Europe, Brassey's, London for Centre for European Policy Studies, Brussels.
Kaldor, N. (1955), An Expenditure Tax, Allen and Unwin, London.
Kalisch, D.W. and Aman, A. (1998), ‘Retirement income systems: the reform process across OECD countries’, Ageing Working Paper no. 3.4, OECD, Paris.
King, M.A. and Fullerton, D. (1984), The Taxation of Income from Capital: A Comparative Study of the United States, United Kingdom, Sweden and West Germany, Chicago University Press, Chicago.
Knox, D. (1990), ‘The taxation support of occupational pensions: a long-term view’, Fiscal Studies, vol. 11, no. 4, pp. 29-43.
Leechor, C. (1677), ‘Reforming Indonesia’s pension system’, Policy Research Working Paper no. 1677, World Bank, Washington, D.C.
Meade, J.E. (1978), The Structure and Reform of Direct Taxation, Allen and Unwin for the Institute for Fiscal Studies, London.
Mexico, Comision Nacional del Sistema de Ahorro para el Retiro (1997), Buletin Informativo SAR, no. 14, September/October, Mexico City.
Munnell, A. (1986), ‘Private pensions and saving: new evidence’, Journal of Political Economy, vol. 84, pp. 1013-31.
Pechman, J.A. (ed.) (1980), What Should be Taxed: Income or Expenditure?, Brookings Institution, Washington, D.C. National Association of Pension Funds (1998), Making pensions Easy: NAPF’s Tax Simplification Report, NAPF, London.
OECD (1984), Tax Expenditures: A Review of the Issues and Country Practices, OECD Committee on Fiscal Affairs, Paris.
OECD (1990), The Personal Income Tax Base: A Comparative Study, OECD, Paris.
OECD (1991), Taxing Profits in a Global Economy: Domestic and International Issues, OECD, Paris.
OECD (1992), Private Pensions and Public Policy, OECD, Paris.
OECD (1994a), Taxation and Household Saving, OECD, Paris.
OECD (1994b), Taxation and Household Saving: Country Surveys, OECD Documents, Paris.
OECD (1995), Tax Expenditures: Recent Experiences, OECD, Paris.
OECD (1997), The Tax-Benefit Position of Employees, OECD, Paris.
OECD (1998a), Maintaining Prosperity in an Ageing Society, OECD, Paris.
OECD (1998b), Social Expenditures Database, Labour Market and Social Policy Occasional Papers, OECD, Paris.
Poterba, J., Venti, S.F. and Wise, D.A. (1996), ‘Personal retirement savings programs and asset accumulation’, National Bureau of Economic Research Working Paper no. 5599.
Primamerica (1997), Statistical Report on Private Pension Systems in Latin America, Report no. 4, Santiago.
Queisser, M. (1998), ‘The second-generation pension reforms in Latin America’, Ageing Working Paper no. 5.4, OECD, Paris.
Robson, M.H. (1995), ‘Taxation and household saving: some reflections on the OECD report’, Fiscal Studies, vol. 16, no. 1, pp. 38-57.
Royal Commission on Taxation (the Carter Commission) (1966), Report, volume 3, Taxation of Income, the Queen's Printer, Ottawa.
Samuelson, P. (1987), ‘Comment’, in Bodie, Z. and Shoven, J.B. (eds), Financial Aspects of the United States Pension System, University of Chicago Press for National Bureau of Economic Research.
Scott, M. (1987), ‘A note on King and Fullerton's formulae to estimate the taxation of income from capital’, Journal of Public Economics, vol. 34, no. 2.
Surrey, S.S. (1973), Pathways to Tax Reform, Harvard University Press, Cambridge, Massachusetts.
Thaler, R.H. (1994), ‘Psychology and savings policies’, American Economic Review, vol. 84, p. 186.
United Kingdom, Department of Social Security (1994), Social Security Statistics 1994, Her Majesty's Stationery Office, London.
United Kingdom, Department of Social Security (1997), ‘“Guaranteed secure pensions for all”, says Peter Lilley’, Press Notice no. 97/044, London.
United Kingdom, HM Treasury (1997), Tax Ready Reckoner and Tax Reliefs, The Stationery Office, London.
United Kingdom, Inland Revenue (1997), The new individual savings account: a consultative document, London.
United States, Joint Committee on Taxation (1993), Estimates of Federal Tax Expenditures for Fiscal Years 1994-1998, Government Printing Office, Washington, D.C.
United States Treasury (1977), Blueprints for Basic Tax Reform, Government Printing Office, Washington, D.C.