Is U.S. corporate income double - taxed ? Leonard E. Burman, Kimberly A. Clausing and Lydia Austin
By: Burman, Leonard Emanuel
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Contributor(s): Clausing, Kimberly A | Austin, Lydia.
Material type: 
ArticlePublisher: 2017Subject(s): IMPUESTOS | DOBLE IMPOSICION | ESTADOS UNIDOS | SOCIEDADES
In:
National tax journal v. 70, n. 3, September 2017, p. 675-706Summary: Using data from several sources, we show that the vast majority ofcorporate income is not double-taxed in the United States. We estimate that thetaxable share of U.S. corporate equity has declined dramatically in recent years, from over 80 percent in 1965 to about 30 percent at present. We discuss the causes of these dramatic changes in the taxable share of corporate stock. Severalfactors explain the shift, includingchanges in retirement finance, demographic changes, changes in the prevalence of pass-through business organizations, andthe increased globalization of capital markets. These findings are important for the development of corporate tax policy.Moving the capital tax burden to the individual income tax, as some have proposed, without reforming tax preferences that currently exempt much corporate equity from taxation under the individualincome tax, would lead to a large revenue loss. These findings also have implications for other important questions in public economics, including the measurement of the cost of capital, the importance of capital gains lock-in effects, theconsequences of changes in dividend taxation, and the natureof clientele effects.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 233/2017/3-6 (Browse shelf) | Available | OP 233/2017/3-6 |
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Using data from several sources, we show that the vast majority ofcorporate income is not double-taxed in the United States. We estimate that thetaxable share of U.S. corporate equity has declined dramatically in recent years, from over 80 percent in 1965 to about 30 percent at present. We discuss the causes of these dramatic changes in the taxable share of corporate stock. Severalfactors explain the shift, includingchanges in retirement finance, demographic changes, changes in the prevalence of pass-through business organizations, andthe increased globalization of capital markets. These findings are important for the development of corporate tax policy.Moving the capital tax burden to the individual income tax, as some have proposed, without reforming tax preferences that currently exempt much corporate equity from taxation under the individualincome tax, would lead to a large revenue loss. These findings also have implications for other important questions in public economics, including the measurement of the cost of capital, the importance of capital gains lock-in effects, theconsequences of changes in dividend taxation, and the natureof clientele effects.
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