Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 2003 erstellt
Beschreibung:
This paper reconsiders the effects of taxes on firms' organizational form choices when there are differences in the convexity of firms' personal and corporate tax functions and when firms can choose the riskiness of their projects. Deadweight losses can occur when a firm chooses to be a corporate entity rather than a non-corporate entity in response to taxes and vice versa. This first type of tax distortion has been largely ignored in previous research. I provide evidence that this first type of distortion is occurring by examining the tax returns of a sample of S and C corporations. This evidence casts doubt on past estimates of the deadweight loss of the corporate tax