02148cam a22002177 450000100060000000300050000600500170001100800
4100028100002300069245008100092260006600173490004100239500001800
2805201308002985300061016065380072016675380036017397100042017758
30007601817856003701893w3225NBER20131219104930.0131219s1991
mau||||fs|||| 000 0 eng d1 aSinn, Hans-Werner.14aThe
Vanishing Harberger Triangleh[electronic resource] /cHans-
Werner Sinn. aCambridge, Mass.bNational Bureau of Economic
Researchc1991.1 aNBER working paper seriesvno. w3225
aOctober 1991.3 aThe paper presents a trapped equity model,
but instead of studying how taxes affect corporate decisions
when a sufficient amount of equity is already in the trap, it
asks the question how does the equity get there. To be more
specific, the paper analyzes how the double taxation of
dividends affects the growth of a corporation that starts with
no equity capital. One conclusion is that dividend taxes are
distortionary before they are paid, but not when they are paid.
Once the firm is in a stage of maturity w