The Significance of Tax Law Asymmetries: An Empirical Investigation
This study uses tax reform data for U.S. nonfinancial corporations for the period 1971-82 to estimate the importance of restrictions on the ability of firms to use tax credits and to obtain refunds for tax losses. The authors' results suggest that the incidence of such unused tax benefits increased substantially during the early 1980s, though they do not find these increases attributable to increased investment incentives during that period. They present estimates of the marginal tax rate on interest payments, which take into account unused tax benefits and emphasize the importance of distinguishing current tax payments from marginal tax rates in estimating the incentive to invest. Copyright 1990, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Volume (Year): 105 (1990)
Issue (Month): 1 (February)
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