Do Large Corporate Tax Cuts Boost Wages? Evidence from Ohio

被引:1
作者
Kakpo, Eliakim [1 ]
机构
[1] INRA, CESAER, 17 BD Dr Petitjean, F-21079 Dijon, France
关键词
income tax; corporate tax; wages; bargaining; TAXATION;
D O I
10.1515/bejeap-2019-0245
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper evaluates a natural experiment which occurred in Ohio in 2005 when the state amended the tax system. The change sets up a dramatic corporate tax cut of 8.3 percentage points (p.p.) over the period 2006-2010 corresponding to a 96.9% reduction in the tax. Policymakers also reduced the personal income tax over the same period by 0.95 percentage point (p.p.). I investigate the incidence of the reform on wages in general and corporate wages in the short-run. To do so, I use a synthetic control method along with an event study design applied to individual records of the Current Population Survey (CPS). The results in this paper suggest that the corporate tax cut may have resulted in a onetime payment in corporate wages at the onset of the reform.
引用
收藏
页码:537 / 575
页数:39
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