Taxation and the financial crisis / edited by Julian S. Alworth and Giampaolo Arachi.

List of figures, ix -- List of tables, xi -- List of boxes, xii -- List of contributors, xiii -- Abbreviations, xviii -- 1. Introduction / Julian S. Alworth and Giampaolo Arachi, 1 -- 2. Culprit, accomplice, or bystander? Tax policy and the shaping of the crisis / Michael Keen, Alexander Klemm, and Victoria Perry, 28 -- 3. The role of housing tax provisions / Thomas Hemmelgarn, Gaetan Nicodeme, and Ernesto Zangari, 61 -- 4. The role of taxes in compensation schemes and structured finance / Vieri Ceriani, Stefano Manestra, Giacomo Ricotti, and Alessandra Sanelli, 88 -- 5. Can tax policy help to prevent financial crisis) / Thomas Hemmelgarn and Gaetan Nicodeme, 116 -- 6. Taxation and the financial sector / Douglas A. Shackelford, Daniel N. Shaviro, and Joel Slemrod, 148 -- 7. Income tax reform implications of the financial crisis / Daniel N. Shaviro, 174 -- 8. Moving beyond the crisis: tax policies for the soundness of financial markets / Geoff Lloy, 190 -- 9. Government debt management at low interest rates / Robert N. McCauley and Kazuo Ueda, 214 -- 10. The effect of fiscal consolidation on short-term growth: A review and implications for the UK / Katarzyna Anna Bilika, Michael P. Devereux, and Clemens Fuest, 231 -- 11. Regulation and taxation: Economics and politics / Donato Masciandaro and Francesco Passarelli, 257 -- References, 270 -- Autor index, 291 -- Subject index, 295.

The financial crisis triggered a global debate on the taxation of the financial sector. A number of international policy initiatives, most notably by the G-20, have called for major changes to the tax treatment of financial institutions and transactions, as well as to working practice within the financial sector. This book examines how tax policies contributed to the financial crisis and whether taxation can play a role in the reform efforts to establish a sounder and safer financial system. It looks at the pros and cons of various tax initiatives including limiting the tax advantages to debt financing; special taxes on the financial sector; and financial transactions taxes. It examines policy concerns such as: the manner in which the financial sector should "pay" for its bailout and the role of accumulated tax losses on financial institutions' behaviour; the role that taxes may play in correcting the systemic externalities associated with "too big to fail"; the types of tax that are most appropriate for financial institutions and markets ("excess profits" versus "financial transactions taxes"); the interaction between taxes and the regulation of the financial sector; and the role of taxation in countercyclical and macroeconomic policies.