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National Tax Journal

Distributing the Corporate Income Tax: Revised U.S. Treasury Methodology

Cronin, Julie Anne, Lin, Emily Y., Power, Laura, and Cooper, Michael

Abstract:

The purpose of this analysis is to improve the U.S. Department of the Treasury’s distributional model and methodology by defining new model parameters. We compute the percentage of capital income attributable to normal versus supernormal return, the percentage of normal return attributable to the "cash flow tax" portion of the tax that does not impose a tax burden, and the portion of the burdensome tax on the normal return to capital borne by capital income versus labor income. In summary, 82 percent of the corporate income tax burden is borne by capital income and 18 percent is borne by labor income.

Citation

Cronin, Julie Anne, Lin, Emily Y., Power, Laura, and Cooper, Michael (2013), Distributing the Corporate Income Tax: Revised U.S. Treasury Methodology, National Tax Journal, 66:1, pp. 239-62

DOI: dx.doi.org/10.17310/ntj.2013.1.09

Also in this issue:

  1. Fiscal Illusion From Property Reassessment? An Empirical Test of the Residual View
  2. State Earned Income Tax Credits and Participation in Regular and Informal Work
  3. Internal Debt and Multinational Profit Shifting: Empirical Evidence From Firm-Level Panel Data
  4. Revenue Decentralization, the Local Income Tax Deduction, and the Provision of Public Goods
  5. Tax Limit Repeal and School Spending
  6. Who Pays the Corporate Tax in a Global Economy?
  7. Corporate Tax Incidence: Review of General Equilibrium Estimates and Analysis
  8. Measuring the Burden of the Corporate Income Tax Under Imperfect Competition
  9. Distributing the Corporate Income Tax: Revised U.S. Treasury Methodology

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