Tax uncertainty and business activity

• Main Authors: LEE, Jungho, XU, Jianhuan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Entrepreneurship; State government; Uncertainty; Behavioral Economics; Industrial Organization; Taxation
• Online Access: https://ink.library.smu.edu.sg/soe_research/2275; https://ink.library.smu.edu.sg/context/soe_research/article/3274/viewcontent/uncertaintax.pdf
• Institution: Singapore Management University

We investigate the extent to which uncertainties about tax policies affect business activities. We develop a statewide tax-uncertainty measure (TU measure) and show that it captures state corporate tax uncertainty. By comparing adjacent counties across state borders, we show that increasing tax unce...