Keywords

tax, effective tax rates, tax avoidance, time trend, foreign taxes, domestic taxes

Abstract

We investigate systematic changes in corporate effective tax rates over the past 25 years and find that effective tax rates have decreased significantly. Contrary to conventional wis- dom, the decline in effective tax rates is not concentrated in multinational firms; effective tax rates have declined at approximately the same rate for both multinational and domes- tic firms. Moreover, within multinational firms, both foreign and domestic effective rates have decreased. Finally, changes in firm characteristics and declining foreign statutory tax rates explain little of the overall decrease in effective rates.

Original Publication Citation

“Changes in Corporate Effective Tax Rates Over the Past Twenty-Five Years” (with Scott Dyreng, Michelle Hanlon and Edward Maydew). Journal of Financial Economics (2017) 124:441-463.

Document Type

Peer-Reviewed Article

Publication Date

2017

Publisher

Journal of Financial Economics

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Download

Included in

Accounting Commons

Share

COinS