Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes
A firm's deferred tax position can influence how it is affected by a transition from one tax regime to another. We compile disaggregated deferred tax position data for a sample of large U.S. firms between 1993 and 2004 to explore how these positions might affect firm behavior before and after a pre-announced change in the statutory corporate tax rate. Our results suggest that the heterogeneous deferred tax positions of large U.S. corporations create substantial variation in the short-run effect of tax rate changes on reported earnings. Recognizing these divergent incentives is important for understanding the political economy of corporate tax reform.
|Date of creation:||Feb 2007|
|Date of revision:|
|Publication status:||published as Poterba, James M., Nirupama S. Rao, and Jeri K. Seidman. "Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes." National Tax Journal 64, 1 (March 2011): 27-57.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Poterba, James M. & Rao, Nirupama S. & Seidman, Jeri K., 2011.
"Deferred Tax Positions And Incentives For Corporate Behavior Around Corporate Tax Changes,"
National Tax Journal,
National Tax Association, vol. 64(1), pages 27-57, March.
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