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Rethinking Corporate Tax Incidence: The Role of Firms, Workers, and Landowners

Author

Listed:
  • David Gstrein
  • Florian Neumeier
  • Andreas Peichl
  • Pascal Zamorski

Abstract

Key MessagesThe corporate tax burden falls mainly on firms and property owners, while workers are less affected than earlier studies suggestCommercial property owners bear a substantial share of the burden as higher taxes reduce property valuesThe lower tax burden on workers suggests that corporate taxation is likely more progressive than often assumedBecause land is immobile, corporate tax distorts economic decisions less than expectedCorporate tax debates should go beyond firms and workers to include property markets, with implications for fairness, efficiency, and local tax policy

Suggested Citation

  • David Gstrein & Florian Neumeier & Andreas Peichl & Pascal Zamorski, 2025. "Rethinking Corporate Tax Incidence: The Role of Firms, Workers, and Landowners," EconPol Policy Brief 77, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:econpb:_77
    as

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    File URL: https://www.ifo.de/DocDL/EconPol-PolicyBrief_77_Corporate-Tax-Incidence.pdf
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    References listed on IDEAS

    as
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    3. Juan Carlos Suárez Serrato & Owen Zidar, 2024. "Who Benefits from State Corporate Tax Cuts? A Local Labor Market Approach with Heterogeneous Firms: Further Results," AEA Papers and Proceedings, American Economic Association, vol. 114, pages 358-363, May.
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    7. Juan Carlos Suárez Serrato & Owen Zidar, 2023. "Who Benefits from State Corporate Tax Cuts? A Local Labor Market Approach with Heterogeneous Firms: Reply," American Economic Review, American Economic Association, vol. 113(12), pages 3401-3410, December.
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