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Who Pays the Corporate Tax in a Global Economy?

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  • Clausing, Kimberly A.
Abstract
The theory of corporate tax incidence suggests that corporate taxes are more likely to harm labor in a globally integrated economy. However, a review of the prior empirical work in this area fails to reveal persuasive empirical evidence of adverse effects on labor, since these studies have several weaknesses that interfere with robust inferences. Using new data and methods, this paper provides additional evidence on the incidence of corporate taxation, finding no robust link between corporate taxation and wages. I discuss possible explanations for these findings as well as policy implications.

Suggested Citation

  • Clausing, Kimberly A., 2013. "Who Pays the Corporate Tax in a Global Economy?," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(1), pages 151-184, March.
    • Handle: RePEc:ntj:journl:v:66:y:2013:i:1:p:151-84
    DOI: 10.17310/ntj.2013.1.06
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    References listed on IDEAS

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