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- Title
Tax Avoidance and Corporations in the United States-The Effective Tax Rate Abnormality for the Top Five Percent by Corporate Size.
- Authors
Bao, Da-Hsien; Romeo, George C.
- Abstract
This paper describes the unusual pattern of corporate effective tax rate by corporate size. We used the concept of rent seeking to explain this behavior. The entire sample shows there is a positive relation between effective tax rate and firm size, and there is a positive price-earnings relation. However, the results for the largest 5% firms are entirely different. Among these firms, there is a negative relation between effective tax rate of firm size, and the price-earnings relation is less significant. Thus, the largest corporations are able to invalidate the progressive tax structure.
- Subjects
UNITED States; TAXATION; TAX rates; PRICES; WAGES; CORPORATE taxes; ECONOMICS
- Publication
Journal of Applied Business & Economics, 2013, Vol 14, Issue 4, p88
- ISSN
1499-691X
- Publication type
Article