Have Excess Returns to Corporations Been Increasing Over Time?

Laura Power and Austin Frerick

National Tax Journal, 2016, vol. 69, issue 4, 831-846

Abstract: This paper examines the difference between a corporate income tax base and a corporate consumption tax base over time. Using a micro-data panel of tax returns of C corporations from 1992 to 2013, we estimate the fraction of the tax base attributable to the risk-free return in each year, and show that it has gradually declined over time, averaging 40 percent from 1992–2002 and 25 percent from 2003–2013. This decrease means that the difference between an income tax base and a consumption tax base has also declined, and suggests that “excess” returns are becoming more important to the tax base.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.17310/ntj.2016.4.05 (text/html)
Access is restricted to subscribers and members of the National Tax Association.

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:ntj:journl:v:69:y:2016:i:4:p:831-846

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by The University of Chicago Press ().