Do consumers pay the corporate tax?

• 成果类型: Article
• 署名作者: Jacob, Martin; Mueller, Maximilian A.; Wulff, Thorben
• 署名单位: WHU - Otto Beisheim School of Management; University of Cologne
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12897
• 发表日期: 2023
• 页码: 2785-2815
• 关键词: state; INVESTMENT; COMPETITION; MARKETS; debt; cuts

摘要

Using granular gas price data and rich variation in corporate tax rates, we find that corporate taxes increase consumer prices. About 64% of the corporate tax is borne by consumers. The effect is stronger when firms have limited access to tax planning opportunities, face stricter tax enforcement, or when consumer demand is less elastic. Taxes also reduce the number of firms and their scale, consistent with a tax-induced increase in marginal cost. Our results suggest that tax policies that increase effective corporate tax rates may have unintended consequences for consumers through higher prices.