Simulating the Elimination of the U.S. Corporate Income Tax / Hans Fehr, Sabine Jokisch, Ashwin Kambhampati, Laurence J. Kotlikoff.

Format:

Book

Author/Creator:

Fehr, Hans.

Contributor:

National Bureau of Economic Research.

Jokisch, Sabine.

Kambhampati, Ashwin.

Kotlikoff, Laurence J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19757.

NBER working paper series no. w19757

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2013.

Summary:

We simulate corporate tax reform in a single good, five-region (U.S., Europe, Japan, China, India) model, featuring skilled and unskilled labor, detailed region-specific demographics and fiscal policies. Eliminating the model's U.S. corporate income tax produces rapid and dramatic increases in the model's level of U.S. investment, output, and real wages, making the tax cut self-financing to a significant extent. Somewhat smaller gains arise from revenue-neutral base broadening, specifically cutting the corporate tax rate to 9 percent and eliminating tax loop-holes.

Notes:

Print version record

December 2013.