Do Corporate Tax Cuts Increase Income Inequality?

We study the effects of corporate taxes on income inequality. Using state as a setting, we provide evidence that tax cuts lead to increases in This result is robust across regression, matching, and synthetic controls approaches, controlling for host potential confounders. use Statistics Income data from Internal Revenue Service explore mechanisms behind this result. find higher both top bottom earners, but gains capital earners exceed total earners. suggests although all appear benefit cut, relation between inequality positive, part, because high-income individuals shift their compensation reduce taxes.