EconPapers    
Economics at your fingertips  
 

Tax Distortions to the Choice of Organizational Form

Roger Gordon and Jeffrey K. MacKie--Mason
Authors registered in the RePEc Author Service: Jeffrey Mackie-Mason

Public Economics from University Library of Munich, Germany

Abstract: Income from corporate and noncorporate firms is treated very differently under the tax law. To what degree do firms change their form of organization in response? Since the relative tax treatment depends on the tax bracket of the investor, the answer will vary by the tax bracket of the owners. To estimate the role of taxes, we estimate what size the nontax advantage to incorporating must take in each industry so that the forecasted choices for organizational form, aggregated over investors in different tax brackets, are consistent with the aggregate evidence. While these nontax costs can be large, noncorporate activity tends to be concentrated in industries where these costs are small, leading to little excess burden from the tax distortion to organizational form.

JEL-codes: D6 D7 H (search for similar items in EconPapers)
Date: 1994-01-18, Revised 1994-01-18
Note: Postscript file submitted via ftp in compressed format.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (93) Track citations by RSS feed

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/9401/9401004.ps.gz (application/postscript)
https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/9401/9401004.pdf (application/pdf)

Related works:
Journal Article: Tax distortions to the choice of organizational form (1994) Downloads
Working Paper: Tax Distorsions to the Choice of Organizational Form (1993)
Working Paper: Tax Distortions to the Choice of Organizational Form (1992) Downloads
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:wpa:wuwppe:9401004

Access Statistics for this paper

More papers in Public Economics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

 
Page updated 2021-01-21
Handle: RePEc:wpa:wuwppe:9401004