Tax incidence and tax avoidance

Economists broadly agree that the economic burden of corporate taxes is not entirely borne by shareholders but also borne in part by employees and consumers. We examine corporate tax avoidance in a setting where shareholders do not bear the entire economic burden of the corporate tax. We show that t...

Descripción completa

Detalles Bibliográficos
Autores: Dyreng, S.D. (Scott D.)|||/items/33167d04-8961-410f-afae-97ad747e365e, Jacob, M. (Martin)|||/items/b4c80971-c877-4230-904c-54573540e482, Jiang, X. (Xu)|||/items/3bb31a5d-6374-4349-b1dc-787e25fd3234, Müller, M.A. (Maximilian A.)|||/items/57f6157d-c3aa-4f81-8480-14c45979d665
Tipo de recurso: artículo
Fecha de publicación:2022
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/119640
Acceso en línea:https://hdl.handle.net/10171/119640
Access Level:acceso abierto
Palabra clave:Tax avoidance
Tax burden
Tax incidence
Labor supply elasticity
Output mix
Tax deductibility
id ES_59efd2a8433c0922fb76c844b02c40a6
oai_identifier_str oai:dadun.unav.edu:10171/119640
network_acronym_str ES
network_name_str España
repository_id_str
spelling Tax incidence and tax avoidanceDyreng, S.D. (Scott D.)|||/items/33167d04-8961-410f-afae-97ad747e365eJacob, M. (Martin)|||/items/b4c80971-c877-4230-904c-54573540e482Jiang, X. (Xu)|||/items/3bb31a5d-6374-4349-b1dc-787e25fd3234Müller, M.A. (Maximilian A.)|||/items/57f6157d-c3aa-4f81-8480-14c45979d665Tax avoidanceTax burdenTax incidenceLabor supply elasticityOutput mixTax deductibilityEconomists broadly agree that the economic burden of corporate taxes is not entirely borne by shareholders but also borne in part by employees and consumers. We examine corporate tax avoidance in a setting where shareholders do not bear the entire economic burden of the corporate tax. We show that the relation between corporate tax incidence and corporate tax avoidance depends on the elasticity of labor supply, the productivity of capital relative to labor, and the tax deductibility of labor and capital. These forces operate through two channels (firm scale and input mix), making the actual association between tax avoidance and incidence an empirical question. We find that firms whose shareholders bear less of the economic burden of corporate taxes engage in less avoidance. Our findings suggest that maximizing after-tax profits might entail less tax avoidance if shareholders do not entirely bear the corporate tax burden. In particular, when the incidence of the corporate tax falls on the firm, firms avoid more taxes. This tendency is stronger if firms use a higher level of capital input, if the deductibility of the cost of capital investment is limited, if firms have high capital productivity, or if tax enforcement is strong.Wiley, Canadian Academic Accounting AssociationDadun. Depósito Académico Digital Universidad de Navarra20222022-06-1420222022-06-14journal articlehttp://purl.org/coar/resource_type/c_6501info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10171/119640reponame:Dadun. Depósito Académico Digital de la Universidad de Navarrainstname:Universidad de NavarraInglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:dadun.unav.edu:10171/1196402026-06-21T12:47:57Z
dc.title.none.fl_str_mv Tax incidence and tax avoidance
title Tax incidence and tax avoidance
spellingShingle Tax incidence and tax avoidance
Dyreng, S.D. (Scott D.)|||/items/33167d04-8961-410f-afae-97ad747e365e
Tax avoidance
Tax burden
Tax incidence
Labor supply elasticity
Output mix
Tax deductibility
title_short Tax incidence and tax avoidance
title_full Tax incidence and tax avoidance
title_fullStr Tax incidence and tax avoidance
title_full_unstemmed Tax incidence and tax avoidance
title_sort Tax incidence and tax avoidance
dc.creator.none.fl_str_mv Dyreng, S.D. (Scott D.)|||/items/33167d04-8961-410f-afae-97ad747e365e
Jacob, M. (Martin)|||/items/b4c80971-c877-4230-904c-54573540e482
Jiang, X. (Xu)|||/items/3bb31a5d-6374-4349-b1dc-787e25fd3234
Müller, M.A. (Maximilian A.)|||/items/57f6157d-c3aa-4f81-8480-14c45979d665
author Dyreng, S.D. (Scott D.)|||/items/33167d04-8961-410f-afae-97ad747e365e
author_facet Dyreng, S.D. (Scott D.)|||/items/33167d04-8961-410f-afae-97ad747e365e
Jacob, M. (Martin)|||/items/b4c80971-c877-4230-904c-54573540e482
Jiang, X. (Xu)|||/items/3bb31a5d-6374-4349-b1dc-787e25fd3234
Müller, M.A. (Maximilian A.)|||/items/57f6157d-c3aa-4f81-8480-14c45979d665
author_role author
author2 Jacob, M. (Martin)|||/items/b4c80971-c877-4230-904c-54573540e482
Jiang, X. (Xu)|||/items/3bb31a5d-6374-4349-b1dc-787e25fd3234
Müller, M.A. (Maximilian A.)|||/items/57f6157d-c3aa-4f81-8480-14c45979d665
author2_role author
author
author
dc.contributor.none.fl_str_mv Dadun. Depósito Académico Digital Universidad de Navarra
dc.subject.none.fl_str_mv Tax avoidance
Tax burden
Tax incidence
Labor supply elasticity
Output mix
Tax deductibility
topic Tax avoidance
Tax burden
Tax incidence
Labor supply elasticity
Output mix
Tax deductibility
description Economists broadly agree that the economic burden of corporate taxes is not entirely borne by shareholders but also borne in part by employees and consumers. We examine corporate tax avoidance in a setting where shareholders do not bear the entire economic burden of the corporate tax. We show that the relation between corporate tax incidence and corporate tax avoidance depends on the elasticity of labor supply, the productivity of capital relative to labor, and the tax deductibility of labor and capital. These forces operate through two channels (firm scale and input mix), making the actual association between tax avoidance and incidence an empirical question. We find that firms whose shareholders bear less of the economic burden of corporate taxes engage in less avoidance. Our findings suggest that maximizing after-tax profits might entail less tax avoidance if shareholders do not entirely bear the corporate tax burden. In particular, when the incidence of the corporate tax falls on the firm, firms avoid more taxes. This tendency is stronger if firms use a higher level of capital input, if the deductibility of the cost of capital investment is limited, if firms have high capital productivity, or if tax enforcement is strong.
publishDate 2022
dc.date.none.fl_str_mv 2022
2022-06-14
2022
2022-06-14
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10171/119640
url https://hdl.handle.net/10171/119640
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Wiley, Canadian Academic Accounting Association
publisher.none.fl_str_mv Wiley, Canadian Academic Accounting Association
dc.source.none.fl_str_mv reponame:Dadun. Depósito Académico Digital de la Universidad de Navarra
instname:Universidad de Navarra
instname_str Universidad de Navarra
reponame_str Dadun. Depósito Académico Digital de la Universidad de Navarra
collection Dadun. Depósito Académico Digital de la Universidad de Navarra
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869408660999897088
score 15,812429

Similares en LA Referencia