Taxes, organizational form, and the deadweight loss of the corporate income tax

• 成果类型: Article
• 署名作者: Goolsbee, A
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00009-7
• 发表日期: 1998
• 页码: 143-152
• 关键词: Corporate taxation; organizational form; taxation; deadweight loss

摘要

By changing the relative gain to incorporation, corporate taxation can play an important role in a firm's choice of organizational form. General equilibrium models have shown that substantial shifting of organizational form in response to tax rates implies a large deadweight loss of taxation. This paper estimates the impact of taxes on organizational form using data from 1900-1939. The results indicate that the effect of taxes is significant but small. A. corporate rate increase of 0.10 raises the non-corporate share of capital 0.002-0.03. The implied deadweight loss of the corporate income tax is around 5-10% of revenue. (C) 1998 Elsevier Science S.A.