How Do Private Firms Respond to Corporate Taxes?

Elena Patel, Jeffrey Coles, Nathan Seegert, and Matthew Smith, 2018.
In a study that uses a large, newly-available administrative dataset on U.S. corporate tax filings, the authors find that U.S. firms are more sensitive to changes in corporate income tax rate than previous studies suggest and that lowering the corporate tax rate from 35% to 25% would increase firm value by 16%. [download pdf]