The mystery of falling state corporate income taxes

Daniel Wilson

FRBSF Economic Letter, 2006, issue dec8

Abstract: The share of corporate profits in the U.S. collected by state governments via the corporate income tax has fallen sharply in the past quarter century. Some commentators have even referred to this as the \\"disappearance\\" of the state corporate income tax (SCIT). Such claims, of course, are an exaggeration--after all, a longer perspective reveals that the share of profits collected by state corporate income taxes was actually lower in the 1960s than it is now. Nonetheless, state public finance experts and state policymakers surely are correct in noting that, since around 1980, corporate income taxes have become an increasingly smaller share of total state tax revenues and a smaller share of businesses' costs. ; This Economic Letter attempts to unravel the mystery of falling state corporate income taxes by analyzing the primary determinants of these taxes and reviewing how they have changed in the last 25 years.

Keywords: Corporations - Taxation; Taxation; Income tax (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.frbsf.org/publications/economics/letter/2006/el2006-35.pdf (application/pdf)
http://www.frbsf.org/publications/economics/letter/2006/el2006-35.html (text/html)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.frbsf.org/publications/economics/letter/2006/el2006-35.html [301 Moved Permanently]--> https://www.frbsf.org/publications/economics/letter/2006/el2006-35.html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfel:y:2006:i:dec8:n:2006-35

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in FRBSF Economic Letter from Federal Reserve Bank of San Francisco Contact information at EDIRC.
Bibliographic data for series maintained by Federal Reserve Bank of San Francisco Research Library ().