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I challenge all of those against this to learn what tax incidence is and how it applies to the corporate tax rate

jellicle 10y ago
Here you go: http://piketty.pse.ens.fr/files/Clausing2012.pdf http://piketty.pse.ens.fr/files/Clausing2012.pdf "At the end of the searching, I find some evidence that suggests that corporate taxation may lower wages, but the preponderance of evidence does not suggest any wage effects from corporate taxation."
- cheald 10y ago
  And counterpoints: http://piketty.pse.ens.fr/files/Desaietal2007.pdf http://piketty.pse.ens.fr/files/Desaietal2007.pdf "between and 45 and 75 percent of the burden of corporate taxes is borne by labor with the balance borne by capital. " https://www.kansascityfed.org/Publicat/RegionalRWP/RRWP07-01.pdf https://www.kansascityfed.org/Publicat/RegionalRWP/RRWP07-01... "Using cross-country data I estimate that a ten percentage point increase in the corporate tax rate of high-income countries reduces mean annual gross wages by seven percent." https://www.treasury.gov/resource-center/tax-policy/tax-analysis/Documents/WP-101.pdf https://www.treasury.gov/resource-center/tax-policy/tax-anal... "While further research is necessary to draw definitive conclusions, these studies suggest that labor may bear a substantial burden from the corporate income tax. Overall, the recent empirical evidence, the open economy computable general equilibrium models of tax incidence, and the sensitivity of the amount of capital investment within a country suggest reconsidering the assumption that the corporate income tax falls on the owners of capital; labor may bear a substantial portion of the burden from the corporate income tax."
cuchoi 10y ago
Summary: "Economists are divided on the issue. Some (including Gregory Mankiw) are persuaded that the corporate income tax ultimately falls mainly on labor, rather than on the presumably wealthier owners of capital. One can actually make a case for cutting the tax in the name of a more progressive income-tax structure, which should appeal to voters and politicians left of center. Other economists, including the authors of the surveys cited above (Jane Gravelle, Jennifer Gravelle and Thomas Hungerford), are persuaded by the available empirical evidence on the five factors I note that the burden of the corporate tax ultimately rests mainly on the owners of capital. That also appears to be the operative assumption of the Congressional Budget Office, the Treasury and other agencies when they analyze the distributional impact of various forms of taxation." Source: https://economix.blogs.nytimes.com/2010/07/23/who-ultimately-pays-the-corporate-income-tax/ https://economix.blogs.nytimes.com/2010/07/23/who-ultimately...

Here you go: http://piketty.pse.ens.fr/files/Clausing2012.pdf http://piketty.pse.ens.fr/files/Clausing2012.pdf "At the end of the searching, I find some evidence that suggests that corporate taxation may lower wages, but the preponderance of evidence does not suggest any wage effects from corporate taxation."

cheald 10y ago
And counterpoints: http://piketty.pse.ens.fr/files/Desaietal2007.pdf http://piketty.pse.ens.fr/files/Desaietal2007.pdf "between and 45 and 75 percent of the burden of corporate taxes is borne by labor with the balance borne by capital. " https://www.kansascityfed.org/Publicat/RegionalRWP/RRWP07-01.pdf https://www.kansascityfed.org/Publicat/RegionalRWP/RRWP07-01... "Using cross-country data I estimate that a ten percentage point increase in the corporate tax rate of high-income countries reduces mean annual gross wages by seven percent." https://www.treasury.gov/resource-center/tax-policy/tax-analysis/Documents/WP-101.pdf https://www.treasury.gov/resource-center/tax-policy/tax-anal... "While further research is necessary to draw definitive conclusions, these studies suggest that labor may bear a substantial burden from the corporate income tax. Overall, the recent empirical evidence, the open economy computable general equilibrium models of tax incidence, and the sensitivity of the amount of capital investment within a country suggest reconsidering the assumption that the corporate income tax falls on the owners of capital; labor may bear a substantial portion of the burden from the corporate income tax."

cuchoi 10y ago

Summary: "Economists are divided on the issue. Some (including Gregory Mankiw) are persuaded that the corporate income tax ultimately falls mainly on labor, rather than on the presumably wealthier owners of capital. One can actually make a case for cutting the tax in the name of a more progressive income-tax structure, which should appeal to voters and politicians left of center. Other economists, including the authors of the surveys cited above (Jane Gravelle, Jennifer Gravelle and Thomas Hungerford), are persuaded by the available empirical evidence on the five factors I note that the burden of the corporate tax ultimately rests mainly on the owners of capital. That also appears to be the operative assumption of the Congressional Budget Office, the Treasury and other agencies when they analyze the distributional impact of various forms of taxation." Source: https://economix.blogs.nytimes.com/2010/07/23/who-ultimately-pays-the-corporate-income-tax/ https://economix.blogs.nytimes.com/2010/07/23/who-ultimately...