An Unintended Consequence of Reducing the Corporate Tax Rate

4 Pages Posted: 21 Dec 2017

See all articles by Shawn Bayern

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 J., 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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