Integrating the Corporate and Individual Tax Systems: The Dividends Paid Deduction Considered

This testimony describes how taxes on corporate earnings have dropped because of corporate moves to avoid taxes and because of shareholder shifts from taxable to nontaxable accounts. Secondly, the testimony describes how a lower estimate of the taxable share of US stock complicates attempts to integrate corporate and individual taxes further. Finally, the testimony suggests some areas for further research on the competitiveness of US corporate taxes.