Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes / James Poterba, Nirupama Rao, Jeri Seidman.

Format:

Book

Author/Creator:

Poterba, James.

Contributor:

National Bureau of Economic Research.

Rao, Nirupama.

Seidman, Jeri.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12923.

NBER working paper series no. w12923

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

A firm's deferred tax position can influence how it is affected by a transition from one tax regime to another. We compile disaggregated deferred tax position data for a sample of large U.S. firms between 1993 and 2004 to explore how these positions might affect firm behavior before and after a pre-announced change in the statutory corporate tax rate. Our results suggest that the heterogeneous deferred tax positions of large U.S. corporations create substantial variation in the short-run effect of tax rate changes on reported earnings. Recognizing these divergent incentives is important for understanding the political economy of corporate tax reform.

Notes:

Print version record

February 2007.