Corporate Tax Reform: A Macroeconomic Perspective
Timothy Dowd () and
National Tax Journal, 2011, vol. 64, issue 4, 923-41
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 about how the rate cut is paid for, as well as some sensitivity analysis of the impact of differing assumptions about Federal Reserve policy and differing assumptions about corporate finance.
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