Abstract

http://ssrn.com/abstract=1593806
 
 

Footnotes (182)



 


 



Corporations That Weren't: The Taxation of Firm Profits in Historical Perspective


Richard Winchester


Thomas Jefferson School of Law

April 21, 2010

Southern California Interdisciplinary Law Journal, Vol. 19, No. 3, p. 501, 2010
Thomas Jefferson School of Law Research Paper No. 1593806

Abstract:     
This article examines the nation's earliest income tax laws, focusing on the provisions that tax business profits in a way that disregards a firm's state law business form. Broadly speaking, this practice dates back to the Civil War era, when a firm's state law business form made no difference in how its profits were taxed. After the adoption of the Sixteenth Amendment, however, Congress decided to give partial tax relief to undistributed corporate profits, largely on the theory that the firm could and would reinvest those profits in its business. But Congress denied that tax relief to a corporation in certain instances, and it also extended the relief to certain unincorporated firms in a narrow range of situations. This study of those provisions reveals how these measures implicitly reaffirmed the Congressional justification for the partial tax relief on undistributed corporate profits. The study also considers the extent to which each of these measures served the larger interests of equity.

Number of Pages in PDF File: 32

Keywords: corporate taxation, partnership taxation, corporate tax history, income tax, corporations, unincorporated firms

JEL Classification: K10, K34

Accepted Paper Series





Download This Paper

Date posted: April 21, 2010 ; Last revised: May 24, 2010

Suggested Citation

Winchester, Richard, Corporations That Weren't: The Taxation of Firm Profits in Historical Perspective (April 21, 2010). Southern California Interdisciplinary Law Journal, Vol. 19, No. 3, p. 501, 2010; Thomas Jefferson School of Law Research Paper No. 1593806. Available at SSRN: http://ssrn.com/abstract=1593806

Contact Information

Richard Winchester (Contact Author)
Thomas Jefferson School of Law ( email )
1155 Island Ave
San Diego, CA 92101
United States
619-961-4332 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 642
Downloads: 98
Download Rank: 161,548
Footnotes:  182

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.297 seconds