Modelling Australian Corporate Tax Reforms: Updated for the Recent US Corporate Tax Changes

2018 ◽  
Author(s):  
Chris Murphy
Keyword(s):  
Corporate Tax ◽  
Tax Reforms ◽  
Tax Changes

scholarly journals On the Political Economy of State Corporate Tax Reforms in the U.S.

2019 ◽  
Vol 11 (3) ◽  
pp. 25
Author(s):  
Eliakim Kakpo
Keyword(s):  
Political Economy ◽  
Political Ideology ◽  
The Political ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Reforms ◽  
Economic Cycles ◽  
State Tax ◽  
Economic Developments ◽  
Tax Changes

This paper discusses the political economy of U.S. state corporate tax reforms. Using a unique dataset of state effective corporate tax rates over the period 1969-2015, I observe that business tax changes are associated with tax competition, swings in economic cycles, and left-right political ideology. In contrast, long-term debt and budgetary pressures do not correlate with state corporate tax policies. Moreover, I document a regional heterogeneity and notice a slowdown in state tax changes after the Federal Reform Act of 1986. These findings matter for the empirics of corporate tax incidence, which is increasingly concerned with the endogeneity between tax reforms and other economic developments.

scholarly journals Political Costs of Tax-Based Consolidations

2019 ◽  
Vol 19 (298) ◽  
Author(s):  
Chuling Chen ◽  
Era Dabla-Norris ◽  
Jay Rappaport ◽  
Aleksandra Zdzienicka
Keyword(s):  
Public Support ◽  
Economic Conditions ◽  
Personal Income Tax ◽  
Corporate Tax ◽  
Tax Reforms ◽  
Political Costs ◽  
Growth Prospects ◽  
The Government ◽  
The Impact

This paper studies the impact of tax-based consolidations on reelection outcomes. Using a granular database of tax-based consolidations for a panel of 10 OECD countries over the last 40 years, we find that tax reforms are politically costly but some reforms are costlier than others. Measures aimed primarily at reducing existing deficits and debt are costlier than tax consolidation policies for improving long-term growth prospects. Electoral costs are particularly high for broad-based indirect tax and corporate tax reforms. Voters tend to penalize governments less if tax consolidations are announced early in the government’s term or if the government has a strong political mandate. Favorable economic conditions increase public support for tax-based consolidations. Personal income tax reforms are electorally salient if the reforms are frontloaded, announced during recessions, and in less progressive tax systems.

scholarly journals Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms

2016 ◽  
Vol 106 (9) ◽  
pp. 2582-2624 ◽  
Author(s):  
Juan Carlos Suárez Serrato ◽  
Owen Zidar
Keyword(s):  
Open Economy ◽  
Structural Parameters ◽  
Heterogeneous Firms ◽  
Reduced Form ◽  
Tax Rates ◽  
Spatial Equilibrium ◽  
Corporate Tax ◽  
Spatial Equilibrium Model ◽  
Tax Changes ◽  
Firm Owners

This paper estimates the incidence of state corporate taxes on the welfare of workers, landowners, and firm owners using variation in state corporate tax rates and apportionment rules. We develop a spatial equilibrium model with imperfectly mobile firms and workers. Firm owners may earn profits and be inframarginal in their location choices due to differences in location-specific productivities. We use the reduced-form effects of tax changes to identify and estimate incidence as well as the structural parameters governing these impacts. In contrast to standard open economy models, firm owners bear roughly 40 percent of the incidence, while workers and landowners bear 30–35 percent and 25–30 percent, respectively. (JEL H22, H25, H32, H71, R23, R51)

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