Document Type
Article
Publication Date
2016
DOI
https://doi.org/10.17310/ntj.2016.3.07
Abstract
Integration of the corporate and individual income taxes can be achieved by providing shareholders a credit for corporate taxes paid with respect to corporate earnings distributed as dividends. When such integration was previously considered in the U.S., proponents emphasized that it could reduce or eliminate many of the familiar distortions of a classical corporate income tax. Integration would also provide a framework for addressing current concerns for tax incentives for U.S. companies to shift income to foreign affiliates in lower-taxed countries or to expatriate in "inversion" transactions. A recent Congressional proposal for a corporate dividend deduction coupled with withholding on dividends could achieve equivalent results, while also reducing effective U.S. corporate tax rates.
Disciplines
Business Organizations Law | Law | Tax Law
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Recommended Citation
Michael J. Graetz & Alvin C. Warren,
Integration of Corporate and Shareholder Taxes,
69
Nat'l Tax J.
677
(2016).
Available at:
https://scholarship.law.columbia.edu/faculty_scholarship/2544
Comments
© 2016 by The University of Chicago.