Do Larger Companies Pay Proportionally Less Taxes Than Smaller Companies
The purpose of this research is to see whether larger companies pay proportionally less taxes than smaller companies when adjusted for cross industry and inter state companies. From a policy perspective, there are more jobs created by the aggregate of small companies than the aggregate of larger companies. Due to this particular circumstance, more workers would be affected by the higher taxes. In order to determine if the question is correct, samples will be collected from the Federal Deposit Insurance Corporation (FDIC) and the U.S. Securities and Exchange Commission (SEC). Also, additional information that will be useful for this research derived from several books and journals. With the data collected from income statements from FDIC and SEC, the earnings before taxes (EBIT) and marginal tax rates can be determine. With these key pieces of information and the advance spreadsheet functions of EXCEL, tests can be ran to test: (a) if companies pays the same amount of taxes in the same industry within Illinois, California, New York, Texas, Florida, and Massachusetts; (b) if larger companies pay proportionally less taxes than smaller companies; and (c) whether or not the three industries being tested (Bank, Insurance, and Telephone) pays proportionally the same amount of taxes.
School:
University of Illinois at Urbana-Champaign
Department:
Finance
Research Advisor:
Joseph Finnerty
Department of Research Advisor:
Joseph Finnerty
Year of Publication:
2003