An Unintended Consequence of Reducing the Corporate Tax Rate
Tax Notes, Vol. 157, No. 8, 2017
FSU College of Law, Public Law Research Paper No. 869
FSU College of Law, Law, Business & Economics Paper No. 1-18
4 Pages Posted: 21 Dec 2017
Date Written: November 20, 2017
Abstract
This article explains how a 20 percent corporate tax rate could be exploited to avoid individual income taxes. (It was printed in November 2017, when a 20 percent corporate tax rate was under consideration. Similar principles apply to a 21 percent tax rate, but to a lesser extent if the maximum individual rate is lowered to 37 percent.)
Keywords: tax, tax planning, tax reform, loopholes
JEL Classification: K34
Suggested Citation: Suggested Citation
Shawn J. Bayern (Contact Author)
Florida State University - College of Law ( email )
425 W. Jefferson Street
Tallahassee, FL 32306
United States
