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The Impact of the 1986 Tax Reform Act on Income Shifting from Corporate to Shareholder Tax Bases: Evidence from the Motor Carrier Industry
Using a sample of privately held C corporations and S corporations from the motor carrier industry during 1984-92, we assess the effect of the 1986 Tax Reform Act on the amount of corporate income shareholders of privately held C corporations shifted to their personal tax bases. We estimate that the...
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| Published in: | Journal of accounting research 2003-03, Vol.41 (1), p.65-88 |
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| Main Authors: | , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c4666-7ec193559220c532c38f113d475743aea1df68341bd31255c6f5ca4fd16b65ff3 |
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| cites | cdi_FETCH-LOGICAL-c4666-7ec193559220c532c38f113d475743aea1df68341bd31255c6f5ca4fd16b65ff3 |
| container_end_page | 88 |
| container_issue | 1 |
| container_start_page | 65 |
| container_title | Journal of accounting research |
| container_volume | 41 |
| creator | Enis, Charles R. Ke, Bin |
| description | Using a sample of privately held C corporations and S corporations from the motor carrier industry during 1984-92, we assess the effect of the 1986 Tax Reform Act on the amount of corporate income shareholders of privately held C corporations shifted to their personal tax bases. We estimate that the C corporations shifted a mean of $130,587 taxable income each year to shareholders (representing 29% of their mean accounting earnings before income shifting) after the 1986 tax law change. The C corporations used deductible managerial compensation and rent expense, but not interest expense, to shift income to shareholders. |
| doi_str_mv | 10.1111/1475-679X.00096 |
| format | article |
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We estimate that the C corporations shifted a mean of $130,587 taxable income each year to shareholders (representing 29% of their mean accounting earnings before income shifting) after the 1986 tax law change. 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We estimate that the C corporations shifted a mean of $130,587 taxable income each year to shareholders (representing 29% of their mean accounting earnings before income shifting) after the 1986 tax law change. The C corporations used deductible managerial compensation and rent expense, but not interest expense, to shift income to shareholders.</description><subject>Accounting</subject><subject>Annual reports</subject><subject>Business structures</subject><subject>C corporations</subject><subject>Common carriers</subject><subject>Compensation</subject><subject>Corporate income tax</subject><subject>Corporate income taxes</subject><subject>Corporate tax planning</subject><subject>Corporate taxes</subject><subject>Dividends</subject><subject>Effects</subject><subject>Income distribution</subject><subject>Income shares</subject><subject>Income shifting</subject><subject>Income taxes</subject><subject>Insurance deductibles</subject><subject>Insurance industry</subject><subject>Liability insurance</subject><subject>Linear regression</subject><subject>Motor carriers</subject><subject>Rates of return</subject><subject>Shareholders</subject><subject>Statistical analysis</subject><subject>Stockholders</subject><subject>Studies</subject><subject>Tax base</subject><subject>Tax increases</subject><subject>Tax legislation</subject><subject>Tax planning</subject><subject>Tax rates</subject><subject>Tax reform</subject><subject>Tax revenues</subject><subject>Taxable income</subject><subject>Taxation</subject><subject>Trucking industry</subject><issn>0021-8456</issn><issn>1475-679X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2003</creationdate><recordtype>article</recordtype><sourceid>8BJ</sourceid><recordid>eNqFUE1vEzEQXSGQCIUzFw4W9239vbvcQtSmqdpUaoPKzXK8Y7Ihu97aTmn-Ar8abxflWkvjkWfee-N5WfaZ4FOSzhnhhchlUf08xRhX8k02OVbeZhOMKclLLuT77EMI2wEiGJlkf1cbQIu21yYiZ1FML1KVEq30M7oD63yLpkOrQ4vOuBbQ_aaxsel-Ietdi2bO987rCCi61NIeNm5Xg3_hf9cBwjd0_tTU0BkYGcOEGxedRzPtfZOgi67eh-gPH7N3Vu8CfPqfT7IfF-er2WV-fTtfzKbXueFSyrwAQyomREUpNoJRw0pLCKvTsgVnGjSprSwZJ-uaESqEkVYYzW1N5FoKa9lJ9nXU7b173EOIauv2vksjFcWyYIIQkUBnI8h4F4IHq3rftNofFMFq8FsN7qrBXfXid2JcjgwPPZgjfL3TW5d8CepJMc1Jug4pKMYspSbFUOpTSKHKUm1im6T4KPWn2cHhtcnq6nZ6N_7gy0jbhuTvkcYEp5QPK-VjuwkRno9t7X8nMZYkH5ZzRZdLMpcPF2rF_gEPGLJb</recordid><startdate>200303</startdate><enddate>200303</enddate><creator>Enis, Charles R.</creator><creator>Ke, Bin</creator><general>Blackwell Publishing Inc</general><general>The Institute of Professional Accounting, Graduate School of Business, University of Chicago</general><general>Wiley Blackwell</general><general>Blackwell Publishing Ltd</general><scope>BSCLL</scope><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>200303</creationdate><title>The Impact of the 1986 Tax Reform Act on Income Shifting from Corporate to Shareholder Tax Bases: Evidence from the Motor Carrier Industry</title><author>Enis, Charles R. ; Ke, Bin</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4666-7ec193559220c532c38f113d475743aea1df68341bd31255c6f5ca4fd16b65ff3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2003</creationdate><topic>Accounting</topic><topic>Annual reports</topic><topic>Business structures</topic><topic>C corporations</topic><topic>Common carriers</topic><topic>Compensation</topic><topic>Corporate income tax</topic><topic>Corporate income taxes</topic><topic>Corporate tax planning</topic><topic>Corporate taxes</topic><topic>Dividends</topic><topic>Effects</topic><topic>Income distribution</topic><topic>Income shares</topic><topic>Income shifting</topic><topic>Income taxes</topic><topic>Insurance deductibles</topic><topic>Insurance industry</topic><topic>Liability insurance</topic><topic>Linear regression</topic><topic>Motor carriers</topic><topic>Rates of return</topic><topic>Shareholders</topic><topic>Statistical analysis</topic><topic>Stockholders</topic><topic>Studies</topic><topic>Tax base</topic><topic>Tax increases</topic><topic>Tax legislation</topic><topic>Tax planning</topic><topic>Tax rates</topic><topic>Tax reform</topic><topic>Tax revenues</topic><topic>Taxable income</topic><topic>Taxation</topic><topic>Trucking industry</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Enis, Charles R.</creatorcontrib><creatorcontrib>Ke, Bin</creatorcontrib><collection>Istex</collection><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of accounting research</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Enis, Charles R.</au><au>Ke, Bin</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>The Impact of the 1986 Tax Reform Act on Income Shifting from Corporate to Shareholder Tax Bases: Evidence from the Motor Carrier Industry</atitle><jtitle>Journal of accounting research</jtitle><date>2003-03</date><risdate>2003</risdate><volume>41</volume><issue>1</issue><spage>65</spage><epage>88</epage><pages>65-88</pages><issn>0021-8456</issn><eissn>1475-679X</eissn><coden>JACRBR</coden><abstract>Using a sample of privately held C corporations and S corporations from the motor carrier industry during 1984-92, we assess the effect of the 1986 Tax Reform Act on the amount of corporate income shareholders of privately held C corporations shifted to their personal tax bases. We estimate that the C corporations shifted a mean of $130,587 taxable income each year to shareholders (representing 29% of their mean accounting earnings before income shifting) after the 1986 tax law change. The C corporations used deductible managerial compensation and rent expense, but not interest expense, to shift income to shareholders.</abstract><cop>Boston, USA and Oxford, UK</cop><pub>Blackwell Publishing Inc</pub><doi>10.1111/1475-679X.00096</doi><tpages>24</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0021-8456 |
| ispartof | Journal of accounting research, 2003-03, Vol.41 (1), p.65-88 |
| issn | 0021-8456 1475-679X |
| language | eng |
| recordid | cdi_proquest_journals_206735115 |
| source | EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); Wiley; JSTOR Archival Journals and Primary Sources Collection |
| subjects | Accounting Annual reports Business structures C corporations Common carriers Compensation Corporate income tax Corporate income taxes Corporate tax planning Corporate taxes Dividends Effects Income distribution Income shares Income shifting Income taxes Insurance deductibles Insurance industry Liability insurance Linear regression Motor carriers Rates of return Shareholders Statistical analysis Stockholders Studies Tax base Tax increases Tax legislation Tax planning Tax rates Tax reform Tax revenues Taxable income Taxation Trucking industry |
| title | The Impact of the 1986 Tax Reform Act on Income Shifting from Corporate to Shareholder Tax Bases: Evidence from the Motor Carrier Industry |
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