TY  - JOUR
AU  - Auerbach,Alan J.
AU  - Devereux,Michael P.
AU  - Simpson,Helen
TI  - Taxing Corporate Income
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14494
PY  - 2008
Y2  - November 2008
UR  - http://www.nber.org/papers/w14494
L1  - http://www.nber.org/papers/w14494.pdf
N1  - Author contact info:
Alan J. Auerbach
Department of Economics
530 Evans Hall, #3880
University of California, Berkeley
Berkeley, CA 94720-3880
Tel: 510/643-0711
Fax: 510/643-0413
E-Mail: auerbach@econ.berkeley.edu

Michael P. Devereux
Centre for Business Taxation
Saïd Business School
Oxford University
Park End Street
Oxford OX1 1HP
United Kingdom
E-Mail: Michael.Devereux@sbs.ox.ac.uk

Helen Simpson
The Centre for Market and Public Organisation
Bristol Institute of Public Affairs
University of Bristol
2 Priory Road
Bristol BS8 1TX
United Kingdom
E-Mail: Helen.Simpson@bristol.ac.uk
AB  - Following Meade (1978), we reconsider issues in the design of taxes on corporate income. We outline developments in economies and in economic thought over the last thirty years, and investigate how these developments should affect the design of taxes on corporate income. We consider a number of tax systems which have been proposed, distinguishing them in two main dimensions: the definition of what is to be taxed, and where it is to be taxed. We suggest that a tax levied on economic rent accruing in the corporate sector, and on a destination basis, merits serious consideration. We discuss alternative approaches, including both R-based and R+F-based flow-of-funds taxes and an ACE allowance. It is the destination basis -- with border adjustments for exports and imports -- which primarily distinguishes our suggestions from those of Meade (1978).
ER  -