Mylène Levac

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Staff Working Papers

Inflation and the Tax System in Canada: An Exploratory Partial-Equilibrium Analysis

Staff Working Paper 2000-18 Brian O'Reilly, Mylène Levac
This paper reports on an exploratory application to Canadian data of an approach pioneered by Martin Feldstein (1997, 1999). Feldstein finds that even at low inflation rates there are costs arising from the distortions introduced by the interaction of inflation with the taxation of income from capital (capital gains, dividends, and interest) in a less-than-perfectly-indexed tax system.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E5, E6