The Tax System and the Financial Crisis

@article{Ceriani2011TheTS,
  title={The Tax System and the Financial Crisis},
  author={Vieri Ceriani and Stefano Manestra and Giacomo Ricotti and Alessandra Sanelli and Ernesto Zangari},
  journal={Development Economics eJournal},
  year={2011}
}
This paper investigates the effects of the tax system on the economic factors that triggered the financial crisis. We examine three cases in which the tax regime interacted with these factors, reinforcing them. First, we focus on the taxation of residential building: while the importance of capital gains taxes is disputed, the deductibility of mortgage interest may have contributed to the financial crisis by creating some of the raw materials for the securitization industry. Second, a narrow… Expand
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