The dictum that each side of a debate should not be entitled to its own facts is not being observed in the corporate tax discussion. Advocates of lower corporate income tax rates focus on the relatively high corporate statutory rate, while proponents of the status quo or higher corporate effective tax rates (ETRs) point to studies and SEC filings showing that the U.S. federal corporate ETR appl...

This paper reviews the recent theoretical literature that analyses the European Union’s policy to eliminate preferential corporate tax regimes and the proposal to introduce a consolidated EU tax base with formula apportionment for the taxation of multinational firms. Since neither proposal includes a harmonisation of corporate tax rates, a core issue is how tax competition between member states...

A multi-divisional firm can engage in ”winner-picking” to redistribute scarce funds efficiently across divisions. But there is a conflict between rewarding winners (investing) and producing resources internally to reward winners (incentives). Managers in winning divisions are tempted to free-ride on resources produced by managers in loosing division whose incentives to produce resources, antici...

Through the historical study of the corporate and technological changes experienced by doctors in São Paulo in the 1930s, we intend to identify how changes in the fields of equipment and knowledge came from the emergence of specialties, which led to corporate changes and rearrangements in the face of the dilemmas introduced by the Getúlio Vargas government and its policy of centralizing power. ...

BY RAY BEEMAN AND ROBERT CARROLL W hile the current spotlight may be on upcoming elections, it is important to remember that lawmakers continue to discuss how to reform the U.S. tax system, laying the groundwork for potential future activity. As part of these discussions, some tax policy leaders have turned their attention to the idea of integrating the corporate and individual income tax syste...

This paper uses U.S. Statistics of Income (SOI) Corporate Income Tax Returns balance sheet data on all corporations, to estimate the effects of changes in corporate tax rates on the debt policies of firms of different sizes. Small firms face very different tax rates than larger firms, and relative tax rates have also changed frequently over time, providing substantial information to identify ta...

This article starts out from the suggestion that global social policy would benefit from more corporate awareness of the necessity of their responsible involvement. The typical response to such a proposition is that the corporate sector is not interested in charity, but in earning money. This paper suggests that the corporate sector has, in fact, an interest in incorporating more social respons...

This paper studies policy changes in capital taxation by focusing on policy interdependence induced by network dynamics at the international level. The empirical findings indicate that the competition mechanism induced by network position similarity in the network of portfolio investment and that of exports causes policy diffusion in corporate taxation; the socialization mechanism (policy learn...