Company Tax Structure and Company Tax Incidence

Abstract

This paper reviews conflicting theories of company tax incidence impliedby the alternative “new” and “traditional” views of dividends andexamines their contrasting policy implications. Whereas, under the“traditional view”, closer integration of the corporate and personalincome tax systems is suggested, an alternative policy orientationemphasizing the non-distorting features of the classical system is impliedby the “new view”. Even if the “traditional view” is accepted, theimplications for design and reform of the company tax vary widely underalternative specifications of domestic and international tax policy objectives. Schedular alternatives to global income taxation are alsoconsidered.