The role of corporate taxes in the decline of the startup rate.

The US has experienced a joint decline in corporate tax rates and startup rates in recent decades. We study how changes in corporate taxes affect startup rates in a firm dynamics model with occupational choice. A change in profit taxes has ambiguous effects on firm selection, and therefore on the st...

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Publicado en:Economic Inquiry Vol. 60; no. 3; pp. 1277 - 1296
Autores principales: Neira, Julian, Singhania, Rish
Formato: Artículo
Publicado: Wiley-Blackwell Jul2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The role of corporate taxes in the decline of the startup rate.
      aug:
        au:
          Neira, Julian
          Singhania, Rish
        affil: Department of Economics, University of Exeter Business School, Exeter, UK
      su:
        Vocational guidance
        Corporate taxes
        Tax rates
        New business enterprises
        Tax incidence
      sug:
        subj:
          Vocational guidance
          Vocational Rehabilitation Services
          Corporate taxes
          Tax rates
          New business enterprises
          Tax incidence
      keyword:
        declining business dynamism
        entrepreneurship
        incidence of corporate taxation
        declining business dynamism
        entrepreneurship
        incidence of corporate taxation
      ab: The US has experienced a joint decline in corporate tax rates and startup rates in recent decades. We study how changes in corporate taxes affect startup rates in a firm dynamics model with occupational choice. A change in profit taxes has ambiguous effects on firm selection, and therefore on the startup rate. Quantitatively, the observed fall in US corporate tax rates generates, at most, one‐fifth of the startup rate decline. Sensitivity analysis suggests that this number is best interpreted as an upper bound, indicating that corporate taxes did not play a major role in the startup rate decline.
      pubtype: Academic Journal
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      src: R
    language: English
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