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The Interindustry Distribution Of Effective Tax Rates For A State Corporate Income Tax

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Listed:
  • Robert J. Newman

    (Louisiana State University)

  • Geoffrey K. Turnbull

    (Louisiana State University)

Abstract

This paper examines the extent to which a single state tax imposes differential burdens across industries. We provide quantitative estimates of the intrastate interindustry distribution of effective rates for the corporate income tax. In addition, we are able to remove that part of the interindustry variation introduced by formula apportionment, the method used by most states to calculate the portion of multi-state firms' incomes to be taxed as income earned in-state. The remaining interindustry variation reflects state over and under-taxation induced by preferential state tax credits and the differences between state and federal progressivity.

Suggested Citation

  • Robert J. Newman & Geoffrey K. Turnbull, 1991. "The Interindustry Distribution Of Effective Tax Rates For A State Corporate Income Tax," The Review of Regional Studies, Southern Regional Science Association, vol. 21(1), pages 65-78, Spring.
    • Handle: RePEc:rre:publsh:v21:y:1991:i:1:p:65-78
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    References listed on IDEAS

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    1. Arnold C. Harberger, 1962. "The Incidence of the Corporation Income Tax," Journal of Political Economy, University of Chicago Press, vol. 70(3), pages 215-215.
    2. Newman, Robert J, 1983. "Industry Migration and Growth in the South," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 76-86, February.
    3. Mieszkowski, Peter, 1972. "The property tax: An excise tax or a profits tax?," Journal of Public Economics, Elsevier, vol. 1(1), pages 73-96, April.
    4. Newman, Robert J. & Sullivan, Dennis H., 1988. "Econometric analysis of business tax impacts on industrial location: What do we know, and how do we know it?," Journal of Urban Economics, Elsevier, vol. 23(2), pages 215-234, March.
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    Cited by:

    1. Jo-Hui Chen, 2005. "An Analysis of Industrial Characteristics and Incentives on Foreign Investment: The Case of Rapid Economic Growth in Taiwan," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 10(3), pages 89-107, Fall.

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