The Disappearing State Corporate Income Tax

49 Pages Posted: 6 Apr 2006

See all articles by Gary C. Cornia

Gary C. Cornia

Brigham Young University - J. Willard and Alice S. Marriott School of Management

Kelly D. Edmiston

Federal Reserve Bank of Kansas City

David L. Sjoquist

Georgia State University

Sally Wallace

Georgia State University - Department of Economics; University of Pretoria

Date Written: December 2004

Abstract

This paper examines alternative explanations for the decline over the past two decades in state corporate income taxes relative to the state economy. We employ a survey of state tax administrators, individual tax returns from Georgia and Utah, and panel data to explore the importance of tax policy, tax planning, and economic factors on the trend in state corporate taxes. We find that corporate tax planning and economic factors account for much of the relative decline and that state tax policy changes are important factors. However, federal tax changes had only a modest effect during this period.

Suggested Citation

Cornia, Gary Carlos and Edmiston, Kelly D. and Sjoquist, David L. and Wallace, Sally, The Disappearing State Corporate Income Tax (December 2004). Andrew Young School of Policy Studies Research Paper Series No. 06-27. Available at SSRN: https://ssrn.com/abstract=895140 or http://dx.doi.org/10.2139/ssrn.895140

Gary Carlos Cornia (Contact Author)

Brigham Young University - J. Willard and Alice S. Marriott School of Management ( email )

P.O. Box 23113
730 N. Eldon Tanner Building
Provo, UT 84602
United States
(801) 378-4618 (Phone)

Kelly D. Edmiston

Federal Reserve Bank of Kansas City ( email )

1 Memorial Dr.
Kansas City, MO 64198
United States

David L. Sjoquist

Georgia State University ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-413-0246 (Phone)

HOME PAGE: http://frp.aysps.gsu.edu/sjoquist/index.html

Sally Wallace

Georgia State University - Department of Economics ( email )

Department of Economics
35 Broad Street, 6th Floor
Atlanta, GA 30303-3083
United States
(404) 413-0046 (Phone)

University of Pretoria ( email )

Physical Address Economic and Management Sciences
Pretoria, Gauteng 0002
South Africa

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