Taxes, incorporation, and productivity

Robert Barro and Brian Wheaton

AEI Economics Working Papers from American Enterprise Institute

Abstract: Long-difference regressions for 1968-2013 show that a higher tax wedge reduces the C-corporate share of net capital stocks, equity (book value), gross assets, and positive net income, as well as the corporate share of gross investment. The C-corporate shares also exhibit downward trends, likely reflecting underlying legal changes. We infer from the quantitative findings that the downward movement in the tax wedge since 1968 has expanded economy-wide productivity by about 4%.

Keywords: corporate taxes; Corporate america (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2019-01
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Related works:
Journal Article: Taxes, Incorporation, and Productivity (2020)
Chapter: Taxes, Incorporation, and Productivity (2019)
Working Paper: Taxes, Incorporation, and Productivity (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:aei:rpaper:1006902

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