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 state-of-the-art 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
Contents
1. The effect of taxes on market responses to dividend announcements and payments: what can we learn from the 2003 dividend tax cut?; 2. Dissecting dividend decisions: some clues about the effects of dividend taxation from recent UK reforms; 3. The 2003 dividend tax cuts and the value of the firm: an event study; 4. How elastic is the corporate income tax base?; 5. An empirical examination of corporate tax noncompliance; 6. On the extent, growth, and efficiency consequences of state business tax planning; 7. Corporate taxation and international competition; 8. The changing role of auditors in corporate tax planning; 9. Taxation and the evolution of aggregate corporate ownership concentration.
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