Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288158 
Year of Publication: 
2023
Citation: 
[Journal:] Contemporary Accounting Research [ISSN:] 1911-3846 [Volume:] 40 [Issue:] 4 [Publisher:] John Wiley & Sons, Inc. [Place:] Hoboken, USA [Year:] 2023 [Pages:] 2785-2815
Publisher: 
John Wiley & Sons, Inc., Hoboken, USA
Abstract: 
Using granular gas price data and rich variation in corporate tax rates, we find that corporate taxes increase consumer prices. About 64% of the corporate tax is borne by consumers. The effect is stronger when firms have limited access to tax planning opportunities, face stricter tax enforcement, or when consumer demand is less elastic. Taxes also reduce the number of firms and their scale, consistent with a tax‐induced increase in marginal cost. Our results suggest that tax policies that increase effective corporate tax rates may have unintended consequences for consumers through higher prices.
Subjects: 
corporate tax
tax enforcement
tax incidence
tax planning
tax policy
application des dispositions fiscales
incidence fiscale
impôt sur les sociétés
planification fiscale
politiques fiscales
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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