Who Gains from Corporate Tax Cuts?

James Cloyne, Ezgi Kurt and Paolo Surico

No 31278, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, companies in the service sector mostly use any tax windfall to increase dividend payouts. We base our conclusions on a novel measure of U.S. firm-specific tax shocks that combines changes in statutory tax rates faced by each firm with narrative identified legislated U.S. federal tax changes between 1950 and 2006.

JEL-codes: E32 E62 H32 (search for similar items in EconPapers)
Date: 2023-05
New Economics Papers: this item is included in nep-mfd, nep-pbe and nep-pub
Note: ME
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Journal Article: Who gains from corporate tax cuts? (2025)
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