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Corporate Tax Reform: A Macroeconomic Perspective

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  • Bull, Nicholas
  • Dowd, Tim
  • Moomau, Pamela

Abstract

There has been considerable recent interest in reducing the corporate tax rate. As a first step toward analyzing the macroeconomic consequences of such a reform, we consider a rate reduction from the current statutory rate of 35 to 30 percent. We present the results under differing assumptions about how the rate cut is paid for, as well as some sensitivity analysis of the impact of differing assumptions about Federal Reserve policy and differing assumptions about corporate finance.

Suggested Citation

  • Bull, Nicholas & Dowd, Tim & Moomau, Pamela, 2011. "Corporate Tax Reform: A Macroeconomic Perspective," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(4), pages 923-941, December.
    • Handle: RePEc:ntj:journl:v:64:y:2011:i:4:p:923-41
    DOI: 10.17310/ntj.2011.4.01
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    References listed on IDEAS

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    1. Jane G. Gravelle, 1994. "The Economic Effects of Taxing Capital Income," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262071584, April.
    2. Christopher L. House & Matthew D. Shapiro, 2008. "Temporary Investment Tax Incentives: Theory with Evidence from Bonus Depreciation," American Economic Review, American Economic Association, vol. 98(3), pages 737-768, June.
    3. Stephen Bond & Jing Xing, 2010. "Corporate taxation and capital accumulation," Working Papers 1015, Oxford University Centre for Business Taxation.
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    Cited by:

    1. Hussein Salia, 2016. "The Effect of Value Added Tax on Corporate Cash Flow in Ghana," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(7), pages 303-303, June.

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