Companies’ low effective tax rates have drawn the ire of politicians, policymakers, the media and the public. As Congress begins debating changes to corporate taxes to partially fund a $3.5 trillion budget plan, the Biden administration is raising questions about how much corporations pay in taxes. But new research from the Indiana University Kelley School of Business and research colleagues elsewhere suggests very low effective tax rates often do not reflect high levels of tax avoidance.
Tag: corporate tax rates
A U.S. Corporate Tax Hike’s Potential Cost on Global Competitiveness
Among the centerpieces of the Biden administration’s proposed $2 trillion infrastructure bill is an increase in the top corporate tax rate, meant to help cover the costs of the expansive spending plan. However, finance professor Michael Faulkender at the University of Maryland’s…