Simulating the Elimination of the U.S. Corporate Income TaxHans Fehr, Sabine Jokisch, Ashwin Kambhampati, Laurence J. Kotlikoff
NBER Working Paper No. 19757 We simulate corporate tax reform in a single good, five-region (U.S., Europe, Japan, China, India) model, featuring skilled and unskilled labor, detailed region-specific demographics and fiscal policies. Eliminating the model's U.S. corporate income tax produces rapid and dramatic increases in the model's level of U.S. investment, output, and real wages, making the tax cut self-financing to a significant extent. Somewhat smaller gains arise from revenue-neutral base broadening, specifically cutting the corporate tax rate to 9 percent and eliminating tax loop-holes.
Supplementary materials for this paper: Acknowledgments and Disclosures Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): 10.3386/w19757 Users who downloaded this paper also downloaded* these:
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