The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Taxation of Corporate Profits

  • Alan J. Auerbach
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1876

Abstract

Corporate profits taxes account for a relatively small share of revenues in leading industrial countries but represent a potentially important source of economic distortion. The incidence of corporate taxes has traditionally been assigned to owners of capital, but more recent theories have suggested that many other groups, from shareholders to owners of other domestic factors of production, may share the burden, and that the burden itself may be overstated. Although commonly described as taxes on income, corporate profits taxes may have quite different bases, making the economic effects potentially quite different from those of a tax on corporate source income.

Keywords

Capital accumulation Capital gains and losses Capital gains taxation Capital mobility Computable general equilibrium model Deadweight loss Debt finance Depreciation Dividend taxation Double taxation Efficiency effect of taxation Equity finance Excise taxes Harberger, A. C. Imperfect competition Insurance Investment risk Portfolio investment Progressive and regressive taxation Proportional taxation Tax avoidance Tax competition Tax distortions Tax incidence Taxation of capital income Taxation of corporate profits Vintage capital 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Alan J. Auerbach
    • 1
  1. 1.