Origins and Consequences of Changes in U.S. Corporate Taxation, 1981-1998

We propose that U.S. corporate taxation revenue, 1981-1998, responded to political and economic forces in ways consistent with a partisan and organizational view of politics, but inconsistent with a structural dependence view. We employ Vector Error Correction (VEC) models to examine our hypotheses,...

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Bibliographic Details
Published in:American journal of political science 2001-01, Vol.45 (1), p.179-201
Main Authors: Inclan, Carla, Quinn, Dennis P., Shapiro, Robert Y.
Format: Article
Language:English
Subjects:
Business
Business and politics
Corporate income taxes
Corporate tax planning
Corporate taxation
Corporate taxes
Corporations
Economic forces
Economic models
Fiscal Policy
Gross domestic product
History
Income taxes
Mathematical Models
Partisanship
Political action committees
Political activity
Political economy
Political partisanship
Politics
Rational expectations
Tax policy
Tax regulations
Tax revenues
Taxation
Taxes
U.S.A
United States
United States of America
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Summary:We propose that U.S. corporate taxation revenue, 1981-1998, responded to political and economic forces in ways consistent with a partisan and organizational view of politics, but inconsistent with a structural dependence view. We employ Vector Error Correction (VEC) models to examine our hypotheses, and offer a new method for generating impulse-response function boundaries in VEC models. We find that short-term increases in corporate tax revenue followed from Democratic Presidential Administrations, decreasing business political activity, and increasing economic growth, trade, and inward foreign direct investment.
ISSN:0092-5853
1540-5907
DOI:10.2307/2669366