Interstate mobility may limit states' ability to choose their desired tax rates. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Mobility and agglomeration effects, however, are not uniform for all individuals within a state, and may vary significantly...

Corporate taxation has historically relied on two views of taxation: the entity view and the aggregative view. The entity view emphasizes that the corporation as a separate entity should pay taxes. The aggregative view instead views the corporation as a conduit for its shareholders and focuses...