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| Rafi Hossain and Ashikur Rahman |
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| ''Is There Anything Good About Corporate Tax Cut?'' |
| ( 2021, Vol. 41 No.3 ) |
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| This paper empirically investigates if the variation in the rate of state-level corporate taxes across the U.S economy has any explanatory power in predicting the variation in R&D expenditures of all U.S. firms listed in the Compustat database. The paper provides evidence on the effects of corporate tax changes on R&D expenditures by using a difference in difference set up. The results suggest that corporate tax cuts do not affect R&D expenditures among all publicly traded firms in the U.S. while an increase in the tax rate leads to a decrease in R&D spending. |
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| Keywords: Corporate Tax, Research and Development, Difference in Difference |
JEL: H2 - Taxation, Subsidies, and Revenue: General
H8 - Public Economics: Miscellaneous Issues: General |
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| Manuscript Received : Mar 27 2020 | | Manuscript Accepted : Jul 18 2021 |
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