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Series:   Elements in Public Economics

The Role of the Corporate Tax

Published online by Cambridge University Press:  01 August 2019

Roger Gordon  and
Sarada
Roger Gordon
Affiliation:
University of California, San Diego
Sarada
Affiliation:
University of Wisconsin, Madison

Summary

Existing corporate taxes distort many aspects of firm behavior. To the extent that the corporate tax rate is lower than personal tax rates, taxes favor corporate activity, and favor retaining earnings rather than paying earnings out to employees and investors. Multinationals can even avoid these taxes by shifting income into tax havens. Given the ease with which multinationals can evade tax, the existing income tax structure faces major pressures, as reflected in average statutory corporate tax rates halving in recent decades. The Element speculates on alternative tax structures that will avoid these problems.
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Keywords

corporate taxesmultinationalsoptimal taxationincome shiftingtax evasion
Type
Element
Information
Series: Elements in Public Economics
Online ISBN: 9781108779982
Publisher: Cambridge University Press
Print publication: 15 August 2019

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The Role of the Corporate Tax
  • Roger Gordon, University of California, San Diego, Sarada, University of Wisconsin, Madison
  • Online ISBN: 9781108779982
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The Role of the Corporate Tax
  • Roger Gordon, University of California, San Diego, Sarada, University of Wisconsin, Madison
  • Online ISBN: 9781108779982
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The Role of the Corporate Tax
  • Roger Gordon, University of California, San Diego, Sarada, University of Wisconsin, Madison
  • Online ISBN: 9781108779982
Available formats
×