Incorporation and Taxation

Type
working paper
Date Issued
2012
Author(s)
;
Egger, Peter
;
Winner, Hannes
Abstract
This paper provides a theory of incorporation and taxation that emphasizes
the role of the corporate legal form in facilitating access to external capital
and the potential advantages of limited liability. Incorporation relaxes financing
constraints and makes corporations larger than comparable non-corporate
firms. For the same reason, a tax on corporations imposes a smaller first-order
welfare loss than a tax on non-corporate firms. We study the consequences of
tax reform and compare the role of taxation with other institutional reforms.
Language
English
Keywords
Incorporation
corporate tax
external capital
limited liability.
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
No
URL
Subject(s)

economics

Division(s)

SEPS - School of Econ...

University of St.Gall...

FGN - Institute of Ec...

Eprints ID
211585
File(s)
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SeparateAppendix.pdf

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71.42 KB

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IncorpTax2012April21.pdf

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332.61 KB

Format

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