Xavier Giroud

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Analysis and Commentary

State Taxation And The Reallocation Of Business Activity: Evidence From Establishment-Level Data

by Joshua D. Rauh, Xavier Giroudvia Journal of Political Economy
Tuesday, April 9, 2019

Using census microdata on multistate firms and their organizational forms, we estimate the impact of state taxes on business activity. For C corporations, employment and the number of establishments have short-run corporate tax elasticities of −0.4 to −0.5 and do not vary with changes in personal tax rates. Pass-through entity activities show tax elasticities of −0.2 to −0.4 with respect to personal tax rates and are invariant with respect to corporate tax rates. 

Analysis and Commentary

State Taxation And The Reallocation Of Business Activity: Evidence From Establishment-Level Data

by Joshua D. Rauh, Xavier Giroudvia National Burea of Economic Research
Monday, September 14, 2015

In a sample of over 27 million establishments of U.S. firms with activities in more than one state, we estimate the impact of state business taxation on business activity. Only firms organized as subchapter C corporations are subject to the corporate tax code, whereas the income of partnerships, sole-proprietorships, and S corporations is passed through annually to the firm's owners and taxed at individual rates.