Implications of Tax Loss Asymmetry for Owners of S Corporations

Autor:	Lucas Goodman, Elena Patel, Molly Saunders-Scott
Rok vydání:	2023
Předmět:	General Economics Econometrics and Finance
Zdroj:	American Economic Journal: Economic Policy. 15:342-369
ISSN:	1945-774X 1945-7731
Popis:	We study tax loss asymmetry for S corporate owners. These owners use most losses contemporaneously, reducing the tax asymmetry compared to C corporations. However, these owners face distortions due to the progressive individual tax schedule. The value of this asymmetry is approximately $3.5 billion per year. We find that this asymmetry creates disincentives for risky investment and causes allocative inefficiencies among loss and gains owners. Finally, we simulate the effects of certain provisions of the Tax Cuts and Jobs Act; we estimate that these provisions—especially section 199A—reduce the behavioral distortions of the asymmetry for S corporate owners. (JEL D22, G32, H25, H32, K34)
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::cc04d39a41adc924a1d1670841c637c8 https://doi.org/10.1257/pol.20200311 Zobrazit plný text záznamu