Tax Distortions to the Choice of Organizational Form

@inproceedings{Gordon1994TaxDT,
  title={Tax Distortions to the Choice of Organizational Form},
  author={Roger H. Gordon and Je rey K. MacKie},
  year={1994}
}
  • Roger H. Gordon, Je rey K. MacKie
  • Published 1994
Income from corporate and noncorporate firms is treated very differently under the tax law. To what degree do firms change their form of organization in response? Since the relative tax treatment depends on the tax bracket of the investor, the answer will vary by the tax bracket of the owners. To estimate the role of taxes, we estimate what size the nontax advantage to incorporating must take in each industry so that the forecasted choices for organizational form, aggregated over investors in… CONTINUE READING
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