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Additional Authors:

  • Daniel I. Halperin
  • Alvin C. Warren


Understanding Income Tax Deferral. Daniel I. Halperin, Alvin C. Warren, January 8, 2014, Paper. "The goal of this brief note is to clarify the role of deferral in income taxation by introducing a distinction between pure deferral and counterparty deferral. Pure deferral (such as a current deduction for a capital expenditure) is equivalent to an interest-free loan from the government and, under certain assumptions, to a tax exemption for investment income. Counterparty deferral (such as qualified or nonqualified deferred compensation) shifts taxation of investment income to another party or account..." May require purchase or user account. Link