IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v69y2016i2p353-386.html
   My bibliography  Save this article

The U.S. State Experience Under Formulary Apportionment: Are There Lessons for International Reform?

Author

Listed:
  • Kimberly A. Clausing

Abstract

While formulary apportionment eliminates the possibility of shifting income across states, it may heighten the responsiveness of businesses to formula factors. The present analysis uses variation in corporate tax policy decisions of U.S. states over the period 1986 to 2012 to better understand the consequences of formulary apportionment, estimating the tax sensitivity of employment, investment, and sales. With the inclusion of adequate control variables, results indicate that economic activity is not sensitive to U.S. state corporate tax policy choices. Still, tax policy choices have important effects on corporate tax revenues. Findings suggest important lessons regarding possible international adoption of formulary apportionment.

Suggested Citation

  • Kimberly A. Clausing, 2016. "The U.S. State Experience Under Formulary Apportionment: Are There Lessons for International Reform?," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(2), pages 353-386, June.
    • Handle: RePEc:ntj:journl:v:69:y:2016:i:2:p:353-386
    DOI: 10.17310/ntj.2016.2.04
    as

    Download full text from publisher

    File URL: https://doi.org/10.17310/ntj.2016.2.04
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://libkey.io/10.17310/ntj.2016.2.04?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lampenius, Niklas & Shevlin, Terry & Stenzel, Arthur, 2021. "Measuring corporate tax rate and tax base avoidance of U.S. Domestic and U.S. multinational firms," Journal of Accounting and Economics, Elsevier, vol. 72(1).
    2. Alex Cobham & Petr Janský & Chris Jones & Yama Temouri, . "An evaluation of the effects of the European Commission's proposals for the Common Consolidated Corporate Tax Base," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. Joana Andrade Vicente, 2023. "Rethinking corporate taxation in the European Union: how and where to tax Multinational Enterprises," Working Papers REM 2023/0286, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    4. Fabien Candau & Jacques Le Cacheux, 2018. "Taming Tax Competition with a European Corporate Income Tax," Revue d'économie politique, Dalloz, vol. 128(4), pages 575-611.
    5. Ortmann, Regina & Simons, Dirk & Voeller, Dennis, 2021. "Real effects of an international tax reform for MNEs," arqus Discussion Papers in Quantitative Tax Research 265, arqus - Arbeitskreis Quantitative Steuerlehre.
    6. Zuo, Shengqiang & Wu, Bangzheng & Feng, Jun, 2023. "Does government reduction of the corporate income tax rate increase employment? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 365-372.
    7. Welsch, Anthony, 2023. "The effect of market-based sourcing on labor outcomes," Journal of Public Economics, Elsevier, vol. 225(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:69:y:2016:i:2:p:353-386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The University of Chicago Press (email available below). General contact details of provider: https://www.ntanet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.