How Do Firms Respond to Corporate Taxes?

Autor:	Nathan Seegert, Elena Patel, Jeffrey L. Coles, Matthew Grady Smith
Rok vydání:	2021
Předmět:	Economics and Econometrics Accounting method Accrual media_common.quotation_subject Monetary economics Investment (macroeconomics) Interest rate Taxable income Tax rate Accounting Economics Revenue health care economics and organizations Finance Corporate tax media_common
Zdroj:	Journal of Accounting Research. 60:965-1006
ISSN:	1475-679X 0021-8456
Popis:	Using a novel empirical approach and newly available administrative data on US tax filings, we estimate the corporate elasticity of taxable income and determine how such tax responsiveness varies depending on accounting method, firm size, and interest rate. In response to a 10 percent increase in the expected marginal tax rate, private US firms decrease taxable income by 9.1 percent, which indicates a discernibly more elastic response than prevailing estimates. This response reflects a decrease in taxable income of 3.0% arising from real economic adjustments to a firm's scale of operations and 6.0 percent arising from tax adjustments via (e.g.) revenue and cost timing. Responsiveness to the corporate tax rate is more elastic if a firm uses cash (9.9%) rather than accrual accounting (7.4%), if the firm is small (9.9%) rather than large (8.6%), and if the firm has relatively high-cost access to capital.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::05dc111f3cba286e6e6374a3b0296e3a https://doi.org/10.1111/1475-679x.12405 Zobrazit plný text záznamu Plný text