Literaturnachweis - Detailanzeige
Autor/inn/en | Quigley, John M.; Smolensky, Eugene |
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Titel | The Tax Treatment of Training and Educational Expenses. Background Paper No. 14. |
Quelle | (1989), (48 Seiten)
PDF als Volltext |
Beigaben | Tabellen |
Sprache | englisch |
Dokumenttyp | gedruckt; online; Monographie |
Schlagwörter | Adult Education; Corporate Education; Educational Economics; Educational Finance; Finance Reform; Human Capital; Instructional Student Costs; Job Training; Postsecondary Education; School Business Relationship; Tax Credits; Tax Deductions; Training Allowances; Tuition Adult; Adults; Education; Adult basic education; Adult training; Erwachsenenbildung; Bildungsökonomie; Bildungsfonds; Financial reform; Finanzreform; Humankapital; Berufsqualifizierender Bildungsgang; Post-secondary education; Tertiäre Bildung; Steuerermäßigung; Training allowance; Ausbildungsbeihilfe; Unterweisung; Unterricht |
Abstract | For those students incurring direct educational expenditures that are high enough, the current personal income tax will discourage investment in human capital, assuming tax rates are essentially proportional over the relevant range. In all probability, however, any distortion between investment in human and physical capital is quantitatively small. This suggests that distortions among different types of education and training under the personal tax code are more important. Under the corporate tax code, human capital and research and development might be favored over investment in physical capital within the firm. However, because firms have little incentive to train their workers for new jobs outside the firm, the distinction between current job and noncurrent job is also relevant in the corporate tax analysis. The current tax code requires firms to treat differently their costs for physical and capital investments, investment in research and development, and human capital development. If it is administratively not possible to amortize the costs of human capital development against future earnings, at least they should be treated comparably with research and development costs. Under the personal income tax code, all investments in education should be immediately and fully deductible by individuals against the current wages and salary of the trainee. They should be deducted on Schedule A of the federal income tax form rather than be subject to a 2 percent expenditure floor. The deduction should be phased out with higher total reported income and allowable against earned income only. (The document contains 36 references.) (CML) |
Erfasst von | ERIC (Education Resources Information Center), Washington, DC |
Update | 2004/1/01 |