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Public Finance and Public Policy First Edition Chapter 22: Taxes on Savings Copyright © 2005 by Worth Publishers Jonathan Gruber

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Page 1: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Public Finance and Public PolicyFirst Edition

Chapter 22:Taxes on Savings

Copyright © 2005 by Worth Publishers

Jonathan Gruber

Page 2: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.1 Taxation and the Intertemporal Consumption DecisionGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 3: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.2 (a) Intertemporal Substitution Versus Income EffectGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 4: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.2 (b) Intertemporal Substitution Versus Income EffectGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 5: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Table 22.1Gruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 6: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Table 22.2Gruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 7: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.3 Tax Subsidies and the Intertemporal Consumption Trade-offGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 8: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.4 IRAs and the Intertemporal Consumption DecisionGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 9: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.5 (a) Low Savers Versus High SaversGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 10: Public Finance and Public Policyweb.mit.edu/14.41/www/ch22.pdf• TABLE 22-1 Capital Taxation in an Inflationary Environment Nominal rate 21% Interest earnings $10 $21 $21 After-tax

Figure 22.5 (b) Low Savers Versus High SaversGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers