scholarly journals Dividend Taxation and Corporate Governance

2005 ◽  
Vol 19 (3) ◽  
pp. 163-180 ◽  
Author(s):  
Randall Morck ◽  
Bernard Yeung
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Income Taxes ◽  
Corporate Sector ◽  
Free Standing ◽  
Corporate Groups ◽  
Dividend Taxation ◽  
Corporate Insiders ◽  
Dividend Tax

In 2003, the United States enacted a tax reform that reduced, but did not eliminate, individual dividend income taxes. Cutting the dividend tax deprives corporate insiders of a justification for retaining earnings to build unprofitable corporate empires. But not eliminating it entirely preserves an advantage for institutional investors, who can put pressure on underperforming managers. This balance is broadly appropriate in the United States—whose large companies are freestanding and widely held. In addition, preserving the existing tax on intercorporate dividends, in place since the Roosevelt era, discourages the pyramidal corporate groups commonplace in other countries, and preserves America's large corporate sector of free-standing widely held firms.

scholarly journals Is This Tax Reform, or Just Confusion?

2018 ◽  
Vol 32 (4) ◽  
pp. 73-96 ◽  
Author(s):  
Joel Slemrod
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
The Political ◽  
Political Will ◽  
Tax Base ◽  
Tax System ◽  
The Law ◽  
Jobs Act ◽  
Tax Cuts

Based on the experience of recent decades, the United States apparently musters the political will to change its tax system comprehensively about every 30 years, so it seems especially important to get it right when the chance arises. Based on the strong public statements of economists opposing and supporting the Tax Cuts and Jobs Act of 2017, a causal observer might wonder whether this law was tax reform or mere confusion. In this paper, I address that question and, more importantly, offer an assessment of the Tax Cuts and Jobs Act. The law is clearly not “tax reform” as economists usually use that term: that is, it does not seek to broaden the tax base and reduce marginal rates in a roughly revenue-neutral manner. However, the law is not just a muddle. It seeks to address some widely acknowledged issues with corporate taxation, and takes some steps toward broadening the tax base, in part by reducing the incentive to itemize deductions.

Reforming the tax state: Taxation and democracy in a transatlantic perspective, France-USA (1880s-1930s)

2012 ◽  
Vol 33 (2) ◽  
pp. 71-85
Author(s):  
Nicolas Delalande
Keyword(s):  
United States ◽  
Twentieth Century ◽  
Comparative Study ◽  
Tax Reform ◽  
The United States ◽  
State Building ◽  
Good Case ◽  
Tax State ◽  
State Taxation

This article highlights the recent historiographical revisions that have led historians on both sides of the Atlantic to develop innovative and refreshing views on state-building and state-society relationships through a comparative study of tax reform in France and the United States at the turn of the twentieth century*. Taxation offers a good case study because it deals with the power of the state, its capacity to act upon and shape society, and provides information about the way it is perceived by citizens, as Joseph Schumpeter summed up in his famous statement (1918).

Tax Expenditures and the Tax Reform Act of 1969 in the United States

2022 ◽  
pp. 1-26
Author(s):  
Seiichiro Mozumi
Keyword(s):  
United States ◽  
Income Tax ◽  
Public Perception ◽  
Tax Reform ◽  
The United States ◽  
Tax Revenue ◽  
Tax System ◽  
Federal Income Tax ◽  
Federal Taxation ◽  
The Government

Abstract In the United States, tax favoritism—an approach that has weakened the extractive capacity of the federal government by providing tax loopholes and preferences for taxpayers—has remained since the 1930s. It has consumed the amount of tax revenue the government can spend and therefore weakened the possibility of the redistribution of fiscal resources. It has also made the federal tax system complicated and inequitable, resulting in undermining taxpayer consent. Therefore, since the 1930s, a tax reform to create a simple, fair, and equitable federal income tax system with the capacity to raise revenue has been long overdue. Many scholars have evaluated the Tax Reform Act of 1969 (TRA69), which Richard M. Nixon signed into law on December 30, 1969, as one of the most successful steps toward accomplishing this goal. This article demonstrates that TRA69 left tax favoritism in the United States. Furthermore, it points out that TRA69 turned taxpayers against the idea of federal taxation, a shift in public perception that greatly impacted tax reform in the years to follow.

scholarly journals Revisiting the Global Decline of the (Non-housing) Labor Share

2020 ◽  
Vol 2 (3) ◽  
pp. 321-338
Author(s):  
Germán Gutiérrez ◽  
Sophie Piton
Keyword(s):  
United States ◽  
The United States ◽  
Corporate Sector ◽  
Labor Share ◽  
Advanced Economies ◽  
Cross Country

We show that cross-country comparisons of corporate labor shares are affected by differences in the delineation of corporate sectors. While the United States excludes all self-employed and most dwellings from the corporate sector, other countries include large amounts of both—biasing labor shares downward. We propose two methods to control for these differences and obtain “harmonized ” non-housing labor share series. Contrary to common wisdom, the harmonized series remain stable or increase in all major advanced economies except the United States and Canada. These new facts cast doubts on most technological explanations for the decline of the labor share. (JEL E25, E26, J23, O11, O15, P23, P36)

Scandinavian Local Income Taxation: Lessons for the United States?

1977 ◽  
Vol 5 (4) ◽  
pp. 471-488 ◽  
Author(s):  
Steven D. Gold
Keyword(s):  
United States ◽  
The United States ◽  
National Government ◽  
Institutional Arrangements ◽  
Income Taxes ◽  
Income Taxation ◽  
Local Autonomy ◽  
Tax Base ◽  
Fiscal Disparities

This paper describes and analyzes the experiences of Norway. Sweden and Denmark with local income taxation in order to test the validity of comments made by numerous American economists about such taxes. Although local income taxes are their major source of locally raised revenue, it appears that the problems of revenue instability and tax base mobility are not serious in these countries. Fiscal disparities have been greatly reduced through consolidation of government units and heavy reliance on transfers from the national government, and these institutional arrangements may have reduced local autonomy in some important respects. The heavy reliance on income taxes by all levels of government is one reason for the extremely high marginal tax rales to which most workers are subject.

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