An Unintended Consequence of Reducing the Corporate Tax Rate

4 Pages Posted: 21 Dec 2017  

Shawn Bayern

Florida State University - College of Law

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

Bayern, Shawn, An Unintended Consequence of Reducing the Corporate Tax Rate (November 20, 2017). 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. Available at SSRN: https://ssrn.com/abstract=3089917

Shawn J. Bayern (Contact Author)

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States

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