Taxation and Corporate Financial Policy

A model of corporate financial policy (debt-equity ratios and dividend payout rates) is included in the Harberger general equilibrium model of incidence of the corporate income tax. Illustrative calculations of the distortions of financial policy and increases in risk premiums induced by the corporate tax are provided. Because risk premiums on corporate securities would be reduced, eliminating the corporate tax or integrating it into the personal tax would increase the income of non-corporate investors relatively more than that of investors in corporate securities, and is therefore less regressive than is commonly thought.

Unveiling the nature of bright z ~ 7 galaxies with the Hubble Space Telescope

We present new Hubble Space Telescope/Wide Field Camera 3 imaging of 25 extremely luminous (-23.2 < M_ UV < -21.2) Lyman-break galaxies (LBGs) at z ~ 7. The sample was initially selected from 1.65 deg^2 of ground-based imaging in the UltraVISTA/COSMOS and UDS/SXDS fields, and includes the extreme Lyman-alpha emitters, `Himiko' and `CR7'. A deconfusion analysis of the deep Spitzer photometry available suggests that these galaxies exhibit strong rest-frame optical nebular emission lines (EW_0(H_beta + [OIII]) > 600A). We find that irregular, multiple-component morphologies suggestive of clumpy or merging systems are common (f_multi > 0.4) in bright z ~ 7 galaxies, and ubiquitous at the very bright end (M_UV < -22.5). The galaxies have half-light radii in the range r_1/2 ~ 0.5-3 kpc. The size measurements provide the first determination of the size-luminosity relation at z ~ 7 that extends to M_UV ~ -23. We find the relation to be steep with r_1/2 ~ L^1/2. Excluding clumpy, multi-component galaxies however, we find a shallower relation that implies an increased star-formation rate surface density in bright LBGs. Using the new, independent, HST/WFC3 data we confirm that the rest-frame UV luminosity function at z ~ 7 favours a power-law decline at the bright-end, compared to an exponential Schechter function drop-off. Finally, these results have important implications for the Euclid mission, which we predict will detect > 1000 similarly bright galaxies at z ~ 7. Our new HST imaging suggests that the vast majority of these galaxies will be spatially resolved by Euclid, mitigating concerns over dwarf star contamination.Comment: 26 pages, 11 figures and 5 tables. Updated to match MNRAS accepted versio

Morphology and Redshifts of Extremely Red Galaxies in the GOODS/CDFS deep ISAAC field

We present the photometric redshift distribution of a sample of 198 Extremely Red Galaxies (ERGs) with Ks3.92 (Vega), selected by Roche et al. in 50.4 sq. arcmin of the Chandra Deep Field South (CDFS). The sample has been obtained using ISAAC-VLT and ACS-HST GOODS public data. We also show the results of a morphological study of the 72 brightest ERGs in the z band (z<25, AB).Comment: 2 pages, 2 figures. To appear in the proceedings of the ESO/USM/MPE Workshop "Multiwavelength Mapping of Galaxy Formation and Evolution", Venice, October 13-16, 200

The Evolution of 3CR Radio Galaxies from z=1

We present the results of a comprehensive re-analysis of the images of a virtually complete sample of 28 powerful 3CR radio galaxies with redshifts 0.6<z<1.8 from the HST archive. Using a two-dimensional modelling technique we have derived scalelengths and absolute magnitudes for a total of 16 3CR galaxies with a median redshift of z=0.8. Our results confirm the basic conclusions of Best, Longair & R\"{o}ttgering (1997, 1998) in that we also find z=1 3CR galaxies to be massive, well-evolved ellipticals, whose infrared emission is dominated by starlight. However, we in fact find that the scalelength distribution of 3CR galaxies at z \simeq 1 is completely indistinguishable from that derived for their low-redshift counterparts from our own recently-completed HST study of AGN hosts at z \simeq 0.2. There is thus no evidence that 3CR radio galaxies at z \simeq 1 are dynamically different from 3CR galaxies at low redshift. Moreover, for a 10-object sub-sample we have determined the galaxy parameters with sufficient accuracy to demonstrate, for the first time, that the z \simeq 1 3CR galaxies follow a Kormendy relation which is indistinguishable from that displayed by low-redshift ellipticals if one allows for purely passive evolution. The implied rather modest level of passive evolution since z \simeq 1 is consistent with that predicted from spectrophotometric models provided one assumes a high formation redshift (z \ge 4) within a low-density Universe. We conclude that there is no convincing evidence for significant dynamical evolution among 3CR galaxies in the redshift interval 0<z<1, and that simple passive evolution remains an acceptable interpretation of the K-z relation for powerful radio galaxies.Comment: 10 pages, 5 figures, minor changes, accepted for publication in MNRA