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Journal Article
Would a research tax credit be a good investment for Texas?
Working Paper
Economic effects of apportionment formula changes : results from a panel of corporate income tax returns
To date empirical studies of the economic effects of changes in state corporate income tax apportionment policies have used only highly aggregated, state-level data. This study uses data at the individual firm level, which is provided by a population of corporate income tax returns from the State of Georgia over the period 1992 2002, to evaluate the economic development and revenue aspects of increasing the sales factor weight (and uniformly lowering the weights on payroll and property) in state corporate income tax apportionment formulas. Looking at the firm level, we find elasticities ...
Journal Article
Why are corporations holding so much cash?
U.S. corporations are holding record-high amounts of cash. One reason has to do with taxes?both the uncertainty about future taxes and the reality of today?s tax rules. The second reason has to do with the rise of research and development; because of its uncertain nature, this sort of work requires access to high levels of cash.
Discussion Paper
Tax reform and corporate capital structure
Working Paper
The economic effects of corporate taxes in a stochastic growth model
The Economic Recovery Act of 1981 led to the largest postwar decline in effective tax rates on capital. The legislation also had its most significant effect on rates in 1982 due to the rapid decline in inflation. Although some of the tax cut was rescinded in 1982, effective corporate tax rates on plant and equipment, measured as the difference between before and after-tax rates on return to capital as a percentage of before-tax rates of return, remained at historically low values though 1986. Accompanying this tax cut is the current economic recovery which began in November, 1982. It is ...
Report
Taxes, regulations, and the value of U.S. and U.K. corporations
We derive the quantitative implications of growth theory for U.S. corporate equity plus net debt over the period 1960?2001. There were large secular movements in corporate equity values relative to GDP, with dramatic declines in the 1970s and dramatic increases starting in the 1980s and continuing throughout the 1990s. During the same period, there was little change in the capital-output ratio or earnings share of output. We ask specifically whether the theory accounts for these observations. We find that it does, with the critical factor being changes in the U.S. tax and regulatory system. ...