[PDF] Essays On Corporate Taxation In The Open Economy eBook

Author : Roger H. Gordon
Publisher :
Page : 22 pages
File Size : 50,31 MB
Release : 1994
Category : Corporations
ISBN :

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Several recent papers argue that corporate income taxes should not be used by small, open economies. With capital mobility, the burden of the tax falls on fixed factors (e.g., labor), and the tax system is more efficient if labor is taxed directly. However, corporate taxes not only exist but rates are roughly comparable with the top personal tax rates. Past models also forecast that multinationals should not invest in countries with low corporate tax rates, since the surtax they owe when profits are repatriated puts them at a competitive disadvantage. Yet such foreign direct investment is substantial. We suggest that the resolution of these puzzles may be found in the role of income shifting, both domestic (between the personal and corporate tax bases) and cross-border (through transfer pricing). Countries need cash-flow corporate taxes as a backstop to labor taxes to discourage individuals from converting their labor income into otherwise untaxed corporate income. We explore how these taxes can best be modified to deal as well with cross-border shifting.

Author : Roger H. Gordon
Publisher :
Page : 35 pages
File Size : 13,41 MB
Release : 2009
Category :
ISBN :

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Several recent papers argue that corporate income taxes should not be used by small, open economies. With capital mobility, the burden of the tax falls on fixed factors (e.g., labor), and the tax system is more efficient if labor is taxed directly. However, corporate taxes not only exist but rates are roughly comparable with the top personal tax rates. Past models also forecast that multinationals should not invest in countries with low corporate tax rates, since the surtax they owe when profits are repatriated puts them at a competitive disadvantage. Yet such foreign direct investment is substantial. We suggest that the resolution of these puzzles may be found in the role of income shifting, both domestic (between the personal and corporate tax bases) and cross-border (through transfer pricing). Countries need cash-flow corporate taxes as a backstop to labor taxes to discourage individuals from converting their labor income into otherwise untaxed corporate income. We explore how these taxes can best be modified to deal as well with cross-border shifting.

Author : George R. Zodrow
Publisher : World Scientific Publishing Company
Page : 0 pages
File Size : 22,43 MB
Release : 2019
Category : Capital levy
ISBN : 9789811205132

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Optimal tax reform : transitional issues in implementing tax reform -- Implementing tax reform -- Optimal tax reform in the presence of adjustment costs -- Grandfather rules and the theory of optimal tax reform -- Consumption tax reform: changes in business equity and housing prices / (with John W. Diamond) -- Consumption taxation -- Should capital income be subject to consumption-based taxation? -- A hybrid consumption-based direct tax proposed for Bolivia / (with Charles E. McLure, Jr.) -- U.S. Supreme Court unanimously chooses substance over form in foreign tax credit case : implications of the PPL decision for the creditability of cash-flow taxes / (with Charles E. McLure, Jr. and Jack Mintz) -- Taxation, uncertainty and the choice of a consumption tax base -- Optimal commodity taxation of traditional and electronic commerce income tax reform -- Treasury I and the Tax Reform Act of 1986 : the economics and politics of tax reform / (with Charles E. McLure, Jr.) -- The windfall recapture tax : issues of theory and design -- Balancing act: weighing the factors affecting the taxation of capital income in a small open economy / (with Margaret McKeehan) -- State and local tax policy -- Revenue options for the state of texas -- The new view of the property tax : a reformulation / (with Peter Mieszkowski) -- The property tax as a capital tax : a room with three views -- Intrajurisdictional capitalization and the incidence of the property tax -- Tax competition -- Pigou, Tiebout, property taxation and the under-provision of local public goods / (with Peter Mieszkowski) -- Capital mobility and capital tax competition -- Tax competition and the efficiency of "benefit-related" business taxes / (with Elisabeth Gugl).

Author : Md Rafi Hossain
Publisher :
Page : 110 pages
File Size : 40,59 MB
Release : 2019
Category : Economics
ISBN : 9781085590815

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My dissertation comprises of three essays in the field of public economics. The first essay investigates the employment effects of corporate taxation at the industry level; Specifically, do corporate taxes affect employment rates at the industry level and are the effects consistent across industries? This paper uses an identification strategy that exploits variation in corporate income tax rates across U.S. states and tries to understand how they impact industry employment at the county level with contiguous counties straddling state borders acting as controls. The results show that any change in the corporate tax rate affect the employment rate in goods producing sectors, but employment rate within the service sectors is only affected by an increase, and not decreases, in the corporate tax rates.The second essay is the first of its kind using the same variation in state corporate tax rates to investigate if they have any explanatory power in predicting variations in CEO pay. Specifically, this paper allows us to shed light on whether corporate tax cuts boost CEO pay? This paper, by using a difference-in-difference (DID) set up over the period 1994 to 2015, finds that corporate tax cuts statistically affect CEO pay among all publicly traded firms in the U.S. The magnitude of the effect increases among the S&P 500, S&P 100 and some tax avoiding firms. The paper further presents some interesting findings using three different measures of executive compensation.Lastly, the third essay empirically investigates whether the variation in state corporate tax rates across the US economy has any explanatory power in predicting variations in research and development expenditure across firms. The paper uses an identification strategy that exploits variation in corporate income tax rates across U.S. states and tries to understand how it impacts firm level R&D activity by using a difference-in-difference set up. Compustat data for all U.S. firms over the period starting from 1994 to 2014 are used to test this hypothesis. The results suggest that corporate tax cuts does not affect R&D expenditures among all publicly traded firms in the U.S. while an increase in the tax rate leads to a decrease in R&D spending.