NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes

James Poterba, Nirupama Rao, Jeri Seidman

NBER Working Paper No. 12923
Issued in February 2007
NBER Program(s):   CF   PE

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.

download in pdf format
   (422 K)

email paper

This paper is available as PDF (422 K) or via email.

This paper was revised on December 15, 2010

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w12923

Published: Poterba, James M., Nirupama S. Rao, and Jeri K. Seidman. "Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes." National Tax Journal 64, 1 (March 2011): 27-57.

Users who downloaded this paper also downloaded these:
Beegle, Dehejia, and Gatti w10088 Child Labor, Crop Shocks, and Credit Constraints
Shackelford, Slemrod, and Sallee w12873 A Unifying Model of How the Tax System and Generally Accepted Accounting Principles Affect Corporate Behavior
Piketty and Saez w8467 Income Inequality in the United States, 1913-1998 (series updated to 2000 available)
Graham, Raedy, and Shackelford w15665 Research in Accounting for Income Taxes
Lerman and Sorensen w8199 Child Support: Interaction Between Private and Public Transfers
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us