@techreport{NBERw12923,
 title = "Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes",
 author = "James Poterba and Nirupama Rao and Jeri Seidman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12923",
 year = "2007",
 month = "February",
 URL = "http://www.nber.org/papers/w12923",
 abstract = {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.},
}