Corporate Tax Avoidance
David A. Weisbach
University of Chicago - Law School; Center for Robust Decisionmaking on Climate & Energy Policy (RDCEP)
U Chicago Law & Economics, Olin Working Paper No. 202
This essay analyzes the problem of corporate tax avoidance. It shows how the marginal efficiency cost of funds and optimal elasticity of taxable income measures can be used to analyze the problem and determine the proper scope of allowable tax planning. It then analyzes the optimal form of tax laws addressing shelters, such as whether the law should use more detailed rules or broad standards.
Number of Pages in PDF File: 27
Keywords: taxation, tax planning, tax law, tax shelters
Date posted: January 16, 2004