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An evaluation of alternative measures of corporate tax rates (1999)
| Citations: | 42 - 3 self |
BibTeX
@MISC{Plesko99anevaluation,
author = {George A. Plesko and Phil Berger and Charles Boynton and Robert Chirinko and Karen Cys and Lowell Dworin and Dan Feenberg and Thomas Omer and Jowell Sabino and Richard Sansing and Karl Scholz and Terry Shevlin (who Read Multiple and Gerald Silverstein and Joel Slemrod and Ken Szeflinski and Roy Welsch and Peter Wilson and Seminar Participants},
title = {An evaluation of alternative measures of corporate tax rates},
year = {1999}
}
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Abstract
This paper examines the ability of financial statement measures of average and marginal tax rates (MTR) to capture tax attributes utilizing firm-level tax and financial data. The results suggest commonly used average tax rate measures provide little insight about statutory tax burdens, and may introduce substantial bias into analyses of tax incidence. Financial statement-based proxies for MTR, particularly those based on simulation methods, are found to perform well in estimating current year tax rates. Both current year and present value MTR $This research was performed while I was on temporary assignment with the Internal Revenue Service. I am grateful for the cooperation and assistance of the Statistics of Income Division, particu-larly Karen Cys, Terry Danby, Nick Greenia, Mike Leszcz, Ken Szeflinski, and to the Boston Taxpayer Services Division. I am especially indebted to Allison Clark for her help in setting up the database used in this paper and the research assistance of Joanne Tao (without whom the tax calculator may never have been completed) and Ying Li. Sharad Asthana generously provided some of the
Keyphrases
corporate tax rate alternative measure financial data internal revenue service ken szeflinski tax calculator particu-larly karen cys sharad asthana tax attribute boston taxpayer service division income division firm-level tax allison clark temporary assignment terry danby current year tax rate financial statement measure marginal tax rate average tax rate measure substantial bias present value mtr tax incidence current year mike leszcz financial statement-based proxy nick greenia research assistance joanne tao statutory tax burden simulation method
