Corporate Effective Tax Rates for Research and Policy

Petr Janský
Authors registered in the RePEc Author Service: Petr Janský

Public Finance Review, 2023, vol. 51, issue 2, 171-205

Abstract: How much companies pay in corporate income taxes is often better captured by effective tax rates (ETRs) rather than by statutory ones. Economists further distinguish between those modeled using the law—forward-looking ETRs—and those estimated from actual data on companies’ profits and taxes—backward-looking ETRs. In this article, I move beyond this distinction, and I break down backward-looking ETRs according to the type of data used to estimate them. I focus on backward-looking ETRs that are estimated using companies’ balance sheet databases. Based on my review of recent findings, I argue that backward-looking ETRs—of multinational corporations in particular—have become more frequently estimated thanks to advances in data availability while also becoming more relevant as a result of ongoing global corporate tax reform debates.

Keywords: corporate income tax; effective tax rate; forward-looking effective tax rate; backward-looking effective tax rate; multinational corporation; profit shifting (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/10911421221137203 (text/html)

Related works:
Working Paper: Corporate Effective Tax Rates for Research and Policy (2020)
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:sae:pubfin:v:51:y:2023:i:2:p:171-205

DOI: 10.1177/10911421221137203

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().