This book was first published in 2007. Most countries levy taxes on corporations, but the impact - and therefore the wisdom - of such taxes is highly controversial among economists. Does the burden of these taxes fall on wealthy shareowners, or is it passed along to those who work for, or buy the products of, corporations? Can a country with high corporate taxes remain competitive in the global economy? This book features research by leading economists and accountants that sheds light on these and related questions, including how taxes affect corporate dividend policy, stock market value, avoidance, and evasion. The studies promise to inform both future tax policy and regulatory policy, especially in light of the Sarbanes-Oxley Act and other actions by the Securities and Exchange Commission that are having profound effects on the market for tax planning and auditing in the wake of the well-publicized accounting scandals in Enron and WorldCom.
• Accessible collection on the advantages and disadvantages of taxing corporations on their income; US-focused • Contributors, including the co-editors, are internationally known • For audiences in law, political science, and business as well as finance and economics
Contributors; Preface; 1. The effect of taxes on market responses to dividend announcements and payments: what can we learn from the 2003 dividend tax cut? Raj Chetty, Joseph Rosenberg and Emmanuel Saez; Comments Gustavo Grullon; Comments Douglas J. Skinner; 2. Dissecting dividend decisions: some clues about the effects of dividend taxation from recent UK reforms Stephen R. Bond, Michael P. Devereux and Alexander Klemm; Comments Roger Gordon; Comments James Poterba; 3. The 2003 dividend tax cuts and the value of the firm: an event study Alan J. Auerbach and Kevin A. Hassett; Comments William G. Gale; Comments George R. Zodrow; 4. How elastic is the corporate income tax base? Jonathan Gruber and Joshua Rauh; Comments Jane Gravelle; Comments Casey B. Mulligan; 5. An empirical examination of corporate tax noncompliance Michelle Hanlon, Lillian Mills and Joel Slemrod; Comments Joseph Bankman; Comments Brian Erard; 6. On the extent, growth, and efficiency consequences of state business tax planning Donald Bruce, John Deskins and William F. Fox; Comments William M. Gentry; Comments Charles E. McLure, Jr; 7. Corporate taxation and international competition James R. Hines Jr; Comments Jack M. Mintz; Comments John Douglas Wilson; 8. The changing role of auditors in corporate tax planning Edward L. Maydew and Douglas A. Shackelford; Comments Steven N. Kaplan; Comments Richard Sansing; 9. Taxation and the evolution of aggregate corporate ownership concentration Mihir A. Desai, Dhammika Dharmapala and Winnie Fung; Comments Jeffrey R. Brown; Comments Jeff Strnad; Index.