Who Pays the Corporate Tax in a Global Economy?
Kimberly A. Clausing
Reed College - Department of Economics
October 16, 2012
National Tax Journal, Vol. 66, No. 1, 2013
The theory of corporate tax incidence suggests that corporate taxes are more likely to harm labor in a globally integrated economy. However, a review of the prior empirical work in this area fails to reveal persuasive empirical evidence of adverse effects on labor, since these studies have several weaknesses that interfere with robust inferences. Using new data and methods, this paper provides additional evidence on the incidence of corporate taxation, finding no robust link between corporate taxation and wages. I discuss possible explanations for these findings as well as policy implications.
Number of Pages in PDF File: 54
Keywords: corporate taxation, tax incidence, tax competition, international taxation
JEL Classification: H25, H22, H87Accepted Paper Series
Date posted: February 9, 2013
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.313 seconds