Implications of Tax Loss Asymmetry for Owners of S Corporations

IF 5.6 1区经济学 Q1 ECONOMICS

American Economic Journal-Economic Policy Pub Date : 2023-02-01 DOI:10.1257/pol.20200311

Lucas Goodman, Elena Patel, Molly Saunders-Scott

引用次数: 0

Abstract

We study tax loss asymmetry for S corporate owners. These owners use most losses contemporaneously, reducing the tax asymmetry compared to C corporations. However, these owners face distortions due to the progressive individual tax schedule. The value of this asymmetry is approximately $3.5 billion per year. We find that this asymmetry creates disincentives for risky investment and causes allocative inefficiencies among loss and gains owners. Finally, we simulate the effects of certain provisions of the Tax Cuts and Jobs Act; we estimate that these provisions—especially section 199A—reduce the behavioral distortions of the asymmetry for S corporate owners. (JEL D22, G32, H25, H32, K34)

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税收损失不对称对S公司所有者的影响

本文研究了S公司所有者的税收损失不对称性。这些所有者同时使用大部分损失，减少了与C公司相比的税收不对称。然而，由于累进个税表，这些业主面临扭曲。这种不对称的价值每年约为35亿美元。我们发现，这种不对称对风险投资产生抑制作用，并导致损失和收益所有者之间的配置效率低下。最后，我们模拟了《减税与就业法案》某些条款的影响;我们估计，这些条款——尤其是第199a条——减少了公司所有者不对称的行为扭曲。(凝胶d22, g32, h25, h32, k34)

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

American Economic Journal-Economic Policy ECONOMICS-

CiteScore

8.20

自引率

1.90%

发文量

期刊介绍： The American Economic Review (AER) is a general-interest economics journal. The journal publishes 12 issues containing articles on a broad range of topics. Established in 1911, the AER is among the nation's oldest and most respected scholarly journals in economics. American Economic Journal: Economic Policy publishes papers covering a range of topics, the common theme being the role of economic policy in economic outcomes. Subject areas include public economics; urban and regional economics; public policy aspects of health, education, welfare and political institutions; law and economics; economic regulation; and environmental and natural resource economics.