Taxes, keiretsu affiliation, and income shifting*1

Taxes and Horizontal Corporate Group (Keiretsu) Affiliation:

This paper investigates the effect of horizontal corporate group (keiretsu) affiliation on effective tax rates in Japan. After controlling for variables that affect corporate income taxes, keiretsu firms have lower effective tax rates than independent firms. These findings are attributed to political power and the unique corporate governance mechanism of keiretsu groups. Furthermore, horizontal...

Migration and optimal income taxes.

The issue addressed in this paper is the optimal taxation of incomes earned tn the home economy, and of incomes earned abroad, when people can migrate. As a preliminary, the optimal taxation of home incomes when there is migration and no taxation of foreign incomes, is discussed. Then in a more general setting, we deal with optimal taxation of different kinds of labour when another kind of labo...

Dividend taxes and income shifting

This paper analyzes whether a dividend tax cut for owner–managers of closely held corporations encourages income shifting, income generation, or both. We use rich, micro data from Sweden for the period 2000–2011 comprising the entire Swedish population, as well as firmand individual-level data for all owner–managers in closely held corporations, partnerships, and self-employed. We find robust e...

Interaction Of Income Distribution, Taxes And Economic Growth

A comparison of social security taxes and Federal income taxes.

In recent years, with the implementation of the tax rate increases and ad hoc earnings base increases included in the 1977 Amendments to the Social Security Act, many observers have noted that social security taxes (for the old-age and survivors insurance (OASI), disability insurance (DI), and hospital insurance (HI) programs combined) now exceed Federal income taxes for many families. The ques...