Open AccessThe Effect Of The Tax Reform Act Of 1986 On Economic Efficiency
Author(s) -
Joseph M. Hagan,
Ernest R. Larkins
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v8i2.6165
Subject(s) - tax reform act , tax reform , economics , variance (accounting) , value added tax , state income tax , indirect tax , ad valorem tax , corporate tax , public economics , tax avoidance , monetary economics , gross income , accounting
The Federal Income tax law was dramatically changed by the Tax Reform Act of 1986. The purpose of this study is to determine if the TRA reduced the variability of corporate effective tax rates and in turn improved economic efficiency. To determine if variability has been reduced, corporate effective tax rates were measured for 1986 and 1987. The variance of the effective tax rates was computed and tested to determine if the variability was reduced.