Tax Corporate Political Activity: A Literature Review

Abstract

Academic researchers and the public have long shared an interest in whether and how corporate political activity is related to taxes and tax policy. In this review, we synthesize 29 empirical studies on tax-related corporate political activity into a conceptual framework to better understand what research has been done and what opportunities for inquiry remain. We also describe the corporate political activity data that is currently available and suggest some standardized terminology. We make three primary recommendations based on our review of the literature: (1) greater attention to institutional detail, (2) further integration of corporate political activity strategies, and (3) methodological improvements. Finally, we provide suggestions for future research, which should be of interest to academics pursuing tax-related corporate political activity research.

Keywords: Taxation, Corporate Political Activity

JEL Classification: H25, H32