Business, Management and Accounting
4 years ago

Corporate income tax hits workers hard, reducing wages by 60 cents.

RePEc: Research Papers in Economics
Measuring the burden of the corporate income tax under imperfect competition
Li Liu, Rosanne Altshuler

Paper Summary

The corporate income tax burden falls on workers, not just companies, especially in industries with less competition. Higher taxes lead to lower wages, with a one dollar tax increase reducing wages by around 60 cents across all industries.

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