@techreport{NBERw6173,
 title = "Taxes, Organizational Form, and the Deadweight Loss of the Corporate Income Tax",
 author = "Austan Goolsbee",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "6173",
 year = "1997",
 month = "September",
 URL = "http://www.nber.org/papers/w6173",
 abstract = {By changing the relative gain to incorporation, corporate taxation can play an important role in a firm's choice of organizational form.  General equilibrium models have shown that substantial shifting of organizational form in response to tax rates implies a large deadweight loss of taxation.  This paper estimates the impact of taxes on organizational form using data from 1900-1939.  The results indicate that the effect of taxes is significant but small.  A corporate rate increase of .10 raises the non-corporate share of capital .002-.03.  The implied deadweight loss of the corporate income tax is around 5-10% of revenue.},
}