Shifting the Burden of Taxation from the Corporate to the Personal Level and Getting the Corporate Tax Rate Down to 15 Percent

Harry Grubert () and Rosanne Altshuler
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Harry Grubert: Office of Tax Analysis, The U.S. Department of the Treasury, Washington, DC, USA

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: We consider three plans for shifting the tax on corporate income to the personal level to achieve a significant reduction in the corporate tax rate. One plan eliminates the corporate tax and taxes dividends and the annual change in the value of publicly traded financial assets at ordinary rates. The second integrates corporate and shareholder taxes. The third lowers the corporate tax rate to 15 percent and taxes dividends and capital gains as ordinary income. To prevent large reductions in capital gains realizations and dividend payouts, an interest charge on taxes deferred during the holding period would be imposed when an asset is sold. We conclude that the third alternative is more robust than the other two.

Keywords: tax reform; corporate income taxation; corporate tax integration (search for similar items in EconPapers)
JEL-codes: H24 H25 H32 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2016-06-28
New Economics Papers: this item is included in nep-acc and nep-pbe
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Citations: View citations in EconPapers (6)

Forthcoming National Tax Journal, September 2016

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Journal Article: Shifting the Burden of Taxation From the Corporate to the Personal Level and Getting the Corporate Tax Rate Down to 15 Percent (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:rut:rutres:201606

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