TY  - JOUR
AU  - Graham,John R.
AU  - Mills,Lillian F.
TI  - Using Tax Return Data to Simulate Corporate Marginal Tax Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13709
PY  - 2007
Y2  - December 2007
UR  - http://www.nber.org/papers/w13709
L1  - http://www.nber.org/papers/w13709.pdf
N1  - Author contact info:
John Graham
Duke University
Fuqua School of Business
One Towerview Drive
Durham, NC 27708-0120
Tel: 919/660-7857
Fax: 919/660-8038
E-Mail: john.graham@duke.edu

Lillian Mills
University of Texas
McCombs School of Business
Austin, TX  78712
E-Mail: lillian.mills@mccombs.utexas.edu
AB  - 
We document that simulated corporate marginal tax rates based on financial statement data (Shevlin 1990 and Graham 1996a) are highly correlated with simulated rates based on corporate tax return data. We provide algorithms that can be used to estimate the book or tax simulated rates when they are not available. We find that the simulated book marginal tax rate does a better job of explaining financial statement debt ratios than does the analogous tax return variable and discuss how the book simulated rate is likely to be an appropriate measure in settings with global, long-term considerations.
ER  -