Explain why the corporate income tax causes resources to flow out of the corporate sector when the
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Explain why the corporate income tax causes resources to flow out of the corporate sector when the short-run effect of the tax is to reduce the after-tax return to capital invested in the corporate sector relative to alternative investments not subject to the tax. What effect do these resource flows have on the return to capital, output prices, and the return to various factors of production?
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The corporate income tax has several effects on the economy and one of its consequences is the potential for resources to flow out of the corporate sector This happens despite the shortrun effect of t...View the full answer
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Related Book For 
Public Finance A Contemporary Application Of Theory To Policy
ISBN: 9780538754460
10th Edition
Authors: David N Hyman
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