Apr 12, 2017

Corporate America has long been cutting its own taxes

J. Scott Applewhite/AP

New research published this week from the National Bureau of Economic Research highlights the growing trend of businesses—large and small—organizing themselves not as traditional corporations, but as "pass-through entities," that pay personal tax rates on income.

Why it matters: The effective corporate tax rate is 27.1%, but for pass-through corporations it's 19%, well below the average effective corporate rate in OECD countries. This undermines the case for the necessity of corporate tax cuts, but it also complicates the tax reform process as pass throughs will likely take up the popular banner of small business to press for expensive cuts of their own.

Data: Owen Zidar; Chart: Andrew Witherspoon / Axios

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Company tax incentives don't spur economic growth

Illustration: Sarah Grillo/Axios

More than two years after Amazon announced its search for a second headquarters and cities around the U.S. bent over backwards to offer the megacompany as much free cash and incentives as they could, new research confirms what economists have been saying for years: Such programs are a waste of money.

Driving the news: A paper from researchers at Princeton and Columbia Business School found "no evidence" that business tax incentives given to individual companies increased broader economic growth at the state and local level.

Go deeperArrowJan 7, 2020

Warren on economists criticizing her wealth tax: "They're just wrong"

Sen. Elizabeth Warren said at the Democratic debate Thursday that economists who claim her wealth tax proposal would stifle growth and investment are "just wrong."

Why it matters: Warren's riff on the wealth tax, in which she emphasized how "a two cent tax" on fortunes of $50 million and above, has become a core part of her stump speech.

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Keep ReadingArrowDec 20, 2019

New York City's mansion tax impacts housing cost

Manhattan sunset, seen in September from Arthur Ashe Stadium in Queens, home of the U.S. Open. Photo: TPN/Getty Images

The average price of a Manhattan co-op or condo fell to $1.8 million in the fourth quarter of 2019, according to Douglass Elliman, the largest real estate brokerage in the New York City area, the Financial Times reports.

Why it matters: "The Manhattan property drop is in sharp contrast to the rally on Wall Street, where stock markets have hit new records."

Go deeperArrowJan 4, 2020