A Stanford GSB professor proposes a new tax model to help companies grow — without shrinking government coffers
What is the best way to tax corporations so that government, business, and societal interests are balanced?
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When the U.S. corporate tax rate was lowered from 35% to 21% in 2017, supporters claimed it would fuel economic growth and job creation, while critics decried the cut as an unnecessary giveaway to the wealthy.
From the perspective of Benjamin Hébert, an associate professor of finance at Stanford Graduate School of Business, and Eduardo Dávilaopen in new window, an assistant professor of economics at Yale, these debates over tax cuts and hikes are too narrow. They believe that more fundamental changes to corporate taxation not only are needed but also would benefit corporations and society alike — without shrinking the public purse.
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up : <a target="_blank" href=" https://www.gsb.stanford.edu/insights/about/emails"> https://www.gsb.stanford.edu/insights/about/emails</a>]]