There has been considerable recent interest in reducing the corporate tax rate. As a first step toward analyzing the macroeconomic consequences of such a reform, we consider a rate reduction from the current statutory rate of 35 to 30 percent. We present the results under differing assumptions...

Since its enactment in 1975, the Earned Income Tax Credit (EITC) has evolved from a small program to alleviate some of the tax burden of the payroll and income tax on low–income working parents to become a significant part of the Federal government's redistribution efforts. This paper presents...

This article investigates the heterogeneity in the tax elasticities of personal capital gains realizations. We first examine the skewed nature of both capital gains assets ownership and their realizations. We then briefly review earlier studies, including Dowd, McClelland, and Muthitacharoen...

We analyze the profit shifting behavior of U.S. multinational firms using a unique panel data set of U.S. tax returns over the period 2002-2012. Prior research has found significant effects of tax rates in affiliate and parent countries on the profit shifting behavior of multinational entities,...

We describe a simple model of taxpayer decisions to realize or delay their capital gains and losses. Investors will delay their realizations if the after tax rate of return is sufficiently high. As the holding period for the asset approaches a year and a day (after which capital gains are taxed...

Public Law 115-97, commonly known as the Tax Cuts and Jobs Act, was passed at the end of 2017 and drastically altered the taxation of corporate income with fundamental changes to the treatment of cross-border income flows. We focus on the potential impact of one particular provision, the...

We analyze the initial corporate response to the 2017 enactment of the “Tax Cuts and Jobs Act” or TCJA. TCJA changed many corporate tax provisions, including a reduction of the corporate statutory tax rate from 35 percent to 21 percent effective in 2018 and sweeping changes to the taxation...

There has been considerable recent interest in reducing the corporate tax rate. As a first step toward analyzing the macroeconomic consequences of such a reform, we consider a rate reduction from the current statutory rate of 35 to 30 percent. We present the results under differing assumptions...