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dc.contributor.authorClausing, Kimberly
dc.coverage.spatialUnited States
dc.date.accessioned2017-02-01T14:18:05Z
dc.date.available2017-02-01T14:18:05Z
dc.date.issued2014
dc.identifier.citationClausing, K. (2014) Lessons for International Tax Reform from the US State Experience under Formulary Apportionment, ICTD Research Report 2, Brighton: IDS.
dc.identifier.urihttps://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/12779
dc.description.abstractThis work undertakes a comprehensive analysis of the US state experience under formulary apportionment of corporate income. While formulary apportionment eliminates the possibility of shifting income across states through accounting strategies that manipulate where income is booked, it may heighten the tax responsiveness of formula factors. The present analysis uses the substantial variation in corporate tax policy decisions of US states over the period 1986 to 2012 to understand the consequences of formulary apportionment better. It examines the effects of policy choices regarding tax rates, formula weights, and other parameters on economic activity, estimating the tax sensitivity of employment, investment, and sales. With the inclusion of adequate control variables, results indicate that economic activity has not been particularly sensitive to US state corporate tax policy choices, especially in recent years. Still, tax policy choices have important effects on corporate tax revenues. These results suggest important lessons regarding possible international adoption of formulary apportionment.
dc.language.isoen
dc.publisherInstitute of Development Studies
dc.relation.ispartofseriesICTD Research Report 2
dc.rights.urihttp://www.ids.ac.uk/files/dmfile/IDSOpenDocsStandardTermsOfUse.pdf
dc.subjectDevelopment Policy
dc.subjectEconomic Development
dc.subjectGovernance
dc.titleLessons for International Tax Reform from the US State Experience under Formulary Apportionment
dc.typeSeries paper (non-IDS)
dc.rights.holderInstitute of Development Studies
dc.identifier.teamGovernance


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