Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247664 
Year of Publication: 
2021
Series/Report no.: 
SAFE Working Paper No. 328
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
The US Tax Cuts and Jobs Act (TCJA) led to a drastic reduction in the corporate tax and improved the treatment of C corporations compared to S corporations. We study the differential effect of the TCJA on these types of corporations using key economic variables of US banks, such as the number of employees, average salaries and benefits, profit/loss before taxes, and net income. Our analysis suggests that the TCJA increased the net-of-tax profits of C corporation banks compared to S corporations and, to a lesser extent, their pre-tax profits. At the same time, the reform triggered no significantly differential effect on the employment and average wages.
Subjects: 
Tax Cuts and Jobs Act
corporate taxation
S corporations
C corporations
banks
JEL: 
H2
G2
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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