TY  - JOUR
AU  - Poterba,James
AU  - Rao,Nirupama
AU  - Seidman,Jeri
TI  - Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12923
PY  - 2007
Y2  - February 2007
UR  - http://www.nber.org/papers/w12923
L1  - http://www.nber.org/papers/w12923.pdf
N1  - Author contact info:
James M. Poterba
Department of Economics
MIT, E52-350
50 Memorial Drive
Cambridge, MA  02142-1347
Tel: 617/253-6673
Fax: 617/258-7804
E-Mail: poterba@nber.org

Nirupama S. Rao
Department of Economics
MIT
50 Memorial Drive
Cambridge, MA 02142-1347
Tel: 6173084183
E-Mail: no email available

Jeri Seidman
The University of Texas at Austin
Austin, TX 78712-0211 
Tel: (512) 471-2163
Fax: (512) 471-3904 
E-Mail: jeri.seidman@mccombs.utexas.edu
M3  - presented at "Financial Reporting and Taxation Conference", December 7, 2006
AB  - 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.
ER  -