CORPORATE TAX INTEGRATION: THE ESTIMATED EFFECTS ON CAPITAL ACCUMULATION AND TAX DISTRIBUTION OF TWO INTEGRATION PROPOSALS

Abstract

This paper explores some of the economic effects of two alternative proposals for corporate tax integration: complete integration and a partial integration method that keeps the tax burden on corporate income unchanged. We argue that either proposal would be desirable because of the favorable effects on the efficiency of the capital markets. Complete integration would have greater benefits than partial integration, particularly with respect to the allocation of consumption over time and of capital between corporate and noncorporate activities. Microeconomic simulations using the TAXSIM model and the 1973 Treasury Tax File show that either form of integration would reduce taxes relatively more for low income individuals and would actually raise taxes for high income individuals.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 25 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.