This paper investigates how corporate tax changes affect workers’ earnings. We use a dataset of U.S. worker-level W-2 filings matched with corporate tax returns and study the implementation of the Domestic Production Activities Deduction (DPAD). We find the DPAD tax rate reduction has a...

We investigate the degree to which corporations can manipulate their accounting of expenses to avoid taxes, and estimate the corresponding effects for corporate tax bases. We exploit a unique corporate tax reform in Texas that replaced a 4.5% profits tax with a much broader 1% tax on gross...