Tax reform to promote investment
分析英国现行公司税抑制投资的原因与程度，提出股权融资投资的税收津贴方案，并讨论如何通过消除免税投资者的股息税收优惠来部分融资，以消除投资抑制和其他扭曲。
In this paper we explain why the current UK corporation tax discourages investment, consider how large this effect is likely to be, and discuss how this tax bias against corporate investment can best be eliminated. The present corporation tax does not raise the cost of capital for all types of investment, but does raise it for investment financed by retained profits. We propose a new corporate to allowance for investment financed by equity (the Allowance for Corporate Equity). This approach not only eliminates the discouragement to investment, hut also reduces or eliminates most other distortions to company behavior that result from the current corporation tax. The new allowance can be partly financed by eliminating the present tax advantages of dividend income for tax-exempt investors, and this may have an additional benefit for investment by removing one source of pressure for high dividend pay-out ratios in the UK.