State Taxation and the Reallocation of Business Activity: Evidence from Establishment-Level Data

• 成果类型: Article
• 署名作者: Giroud, Xavier; Rauh, Joshua
• 署名单位: Columbia University; National Bureau of Economic Research; Centre for Economic Policy Research - UK; Stanford University; Stanford University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/701357
• 发表日期: 2019
• 页码: 1262-1316
• 关键词: FOREIGN DIRECT-INVESTMENT; CORPORATE-TAX INCIDENCE; Location decisions; firm location; LOCAL-TAXES; INDUSTRIAL-LOCATION; organizational form; income tax; GROWTH; differentials

摘要

Using census microdata on multistate firms and their organizational forms, we estimate the impact of state taxes on business activity. For C corporations, employment and the number of establishments have short-run corporate tax elasticities of -0.4 to -0.5 and do not vary with changes in personal tax rates. Pass-through entity activities show tax elasticities of -0.2 to -0.4 with respect to personal tax rates and are invariant with respect to corporate tax rates. Capital shows similar patterns. Reallocation of productive resources to other states drives around half the effect. The responses are strongest for firms in tradable and footloose industries.