The Corporation Tax Decision

Optimal Corporation Tax: An I.O. Approach

Our IO approach links optimal effective corporation tax rates to the nature of sunk costs within industries. Theory predicts that optimal effective corporation tax rates will be negatively related to industry specific sunk cost, and hence industry concentration. Governments should tax industries with monopolistic power softly. Evidence suggests that this Schumpeterian (1942) principle of corpor...

Literature Review of the Economic Effects of Corporation Tax

Corporation tax buoyancy and revenue elasticity in the UK ¬リニ

Observed changes in corporation tax revenues from year to year, which include the effects of changes in tax rates, deductions and compliance, appear to be highly volatile relative to profits, the tax base. This paper examines whether the ‘built-in’ fiscal drag properties of corporation tax can be expected to display similar properties. Simple, conceptual modelling demonstrates that the corporat...

The Corporation as a Tax Shelter: Evidence from Recent Israeli Tax Changes

Shifting of income between the corporate and the personal income tax bases in response to tax incentives is the premise of the literature on taxation and organizational form. Empirical evidence of income shifting is, however, merely circumstantial. Using a unique panel of highfrequency VAT data from Israel, we trace the footprints of income-shifting through incorporation by high-income individu...

Considerations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity

This tax status conversion decision is timely because of the general unfavorable economic environment in the health care industry, the current low asset values in many health care entities, and the low income tax rates on C corporation dividend distributions to individuals. These factors may provide the appropriate conditions for health care entity owners to convert the practice’s or entity’s f...