Robert M. La Follette School of Public Affairs

Single Sales-Factor Corporate Income Tax Apportionment: Evaluating the Impact in Wisconsin

States have traditionally taxed corporations based on the corporation's sales, payroll, and property in the state. An influential paper by economists Austan Goolsbee and Edward Maydew claimed that a switch to taxation based only on sales would increase manufacturing employment. The La Follette School authors re-estimate Goolsbee and Maydew's statistical model and extend the data through 2010. Their finding of much smaller effects on employment calls into question the validity of Goolsbee and Maydew's study. Presentation slides

Additional Info

  • Volume or issue no.: Workshop in Public Affairs, Public Affairs 869, taught by Andrew Reschovsky in Spring 2012
  • Author(s): Jamie Bernthal, Dana Gavrila, Katie Schumacher, Shane Spencer, and Katherine Sydor
  • Client Name: the Wisconsin Department of Revenue