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Is it Rational to Minimize Tax Payments?

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DOI: 10.4236/me.2010.11004    4,006 Downloads   7,528 Views  


The opinion is occasionally voiced that investors should avoid paying tax at all costs. In this paper it is being investigated, using a simple portfolio model with taxes, whether avoiding tax really leads to more µ-σ-efficient solutions. It is demonstrated for four different concepts of tax-minimising policy that they are a far cry from an efficient solution.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

A. Loffler and L. Kruschwitz, "Is it Rational to Minimize Tax Payments?," Modern Economy, Vol. 1 No. 1, 2010, pp. 47-50. doi: 10.4236/me.2010.11004.


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