Trends in tax structures (1965-2016, as % of total tax revenue)

This study examines the optimal location choice decisions of a two-state firm in response to changing state corporate income tax rates and tax structures. Because the firm can engineer its tax liability by manipulating between-state location of sales, property, and payroll, changes in relative state tax rates should result in the firm making such location changes. Results of a model firm simulation, examining various combinations of state tax rates and unitary vs. nonunitary tax structures, found that the firm would make interstate resource changes to minimize company-wide state income taxes. Important findings of the study are that tax rate changes in nonunitary states may cause little or no change in resources used in that state. Indeed, in one scenario, the resulting resource flows from a tax increase are favorable to the nonunitary state, making a tax increase a win-win situation for the state government (higher tax revenue and more economic activity). In contrast, changes in unitary state tax rates can result in significant resource changes in both the unitary state and in other states. The finding that tax rate cuts are ineffective in nonunitary states implies that these states may be more successful in attracting investment by changes affecting apportionment factors (tax credits for new capital, or new jobs) or by use of nontax incentives.

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Consumption tax revenue and personal income tax: analytical elasticities under non-standard tax structures

Applied Economics ◽

10.1080/00036846.2016.1150951 ◽

2016 ◽

Vol 48 (42) ◽

pp. 4042-4050

Author(s):

José Félix Sanz-Sanz ◽

Juan Manuel Castañer-Carrasco ◽

Desiderio Romero-Jordán

Keyword(s):

Income Tax ◽

Personal Income ◽

Tax Revenue ◽

Personal Income Tax ◽

Consumption Tax ◽

Tax Structures

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Auswirkungen der Globalisierung auf die Struktur der Besteuerung

Perspektiven der Wirtschaftspolitik ◽

10.1111/j.1468-2516.2012.00371.x ◽

2012 ◽

Vol 13 (1-2) ◽

pp. 4-18 ◽

Cited By ~ 2

Author(s):

Johannes Becker ◽

May Elsayyad ◽

Clemens Fuest

Keyword(s):

Developed Countries ◽

Oecd Countries ◽

Tax Revenue ◽

Tax Structure ◽

Corporate Tax ◽

Tax Revenues ◽

Theoretical Predictions ◽

National Governments ◽

Over Time ◽

Tax Structures

AbstractThis paper reviews theoretical predictions on the likely effect of globalization on tax revenues and tax structures in developed countries. The predictions are then confronted with data from OECD countries. The evidence suggests that, in contrast to wide-held views, globalization only marginally affects tax revenues and structures. Most importantly, while it is often assumed that globalization would undermine national governments’ ability to tax mobile businesses, corporate tax revenue has increased over time. Overall, the tax systems in developed countries are highly stable in terms of both revenues and tax structure.

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