analyzes a model with a tax on all corporate distributions to equity owners and no other taxes. Contrary to the common view …, the tax is shown to have no substitution effect and, in particular, no effect on the corporate choice between debt and …

This paper examines corporate tax evasion in the context of the contractual relationship between the shareholders of a … firm and a tax manager who possesses private information regarding the extent of legally permissible reductions in taxable … income, and who may also undertake illegal tax evasion. Using a costly state falsification framework, we characterize …

This paper surveys major issues in the theory of tax incidence. These include the incidence of taxes in dynamic as well … literature, rather it is offered to the reader as a pedoqogical piece that may be of use in teaching the theory of tax incidence …

This paper reviews what we know from economic theory and evidence about who bears the burden of the corporate income … tax. Among the lessons from the recent literature are: 1. For a variety of reasons, shareholders may bear a certain … portion of the corporate tax burden. In the short run, they may be unable to shift taxes on corporate capital. Even in the …

constrained social optimality. We then conduct tax incidence exercises in balanced growth by calibrating to the U.S. economy with … a pre-existing 20% flat tax on capital and labor income. Our quantitative results suggest that, due to a dominant … stocks. This main finding is robust even along the transition with time-varying factor tax rates. Moreover, our quantitative …

Fundamental tax reform may change relative prices of consumption goods and may therefore have important effects on the … uses side that are ignored by most general equilibrium simulation models. For a uniform rate of tax, in our model, results … on the uses side are driven by the nonuniform tax system being replaced. Similar effects occur under any uniform and …

such studies is to determine how the burden of a particular tax is allocated among consumers through higher product prices … models. We review partial equilibrium models, where the burden of a tax is shown to depend on the elasticity of supply … equilibrium modeling through the use of log linearization techniques. We then turn to dynamic models to show how a tax on capital …

We model the effects of consumption-type taxes which differ according to the base and location of the tax. Our model … choosing between alternative taxes. In particular, a cash-flow tax on a source basis creates welfare-impairing distortions to …, a destination-based cash-flow tax does not distort behavior, but is incident only on domestic residents. In the …

The empirical literature that seeks to measure the effective tax rate on new investment offers a striking paradox. On … the one hand, summary measures of the effective tax rate on new investment are normally quite high. On the other hand, the … how revenue figures (under the existing system and under a hypothetical R-base tax) can be used to construct an estimate …

We propose a model consistent with two observations. First, the tax rates adopted by different countries are generally … their growth performance. In our model, the effects of taxation on growth are highly non-linear. Low or moderate tax rates … have a very small impact on long-run growth rates. But as tax rates rise, their negative impact on growth rises …