Who Pays the Corporate Tax in a Global Economy?

54 Pages Posted: 9 Feb 2013

See all articles by Kimberly A. Clausing

Kimberly A. Clausing

UCLA School of Law; Peterson Institute for International Economics

Date Written: October 16, 2012


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.

Keywords: corporate taxation, tax incidence, tax competition, international taxation

JEL Classification: H25, H22, H87

Suggested Citation

Clausing, Kimberly A., Who Pays the Corporate Tax in a Global Economy? (October 16, 2012). National Tax Journal, Vol. 66, No. 1, 2013, Available at SSRN: https://ssrn.com/abstract=2213581

Kimberly A. Clausing (Contact Author)

UCLA School of Law ( email )

385 Charles E. Young Drive East
Los Angeles, CA 90095-0001
United States

HOME PAGE: http://law.ucla.edu/faculty/faculty-profiles/kimberly-clausing

Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

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