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1 Scott A. Hodge, Remarks by Scott Hodge to the Tax Fairness Conference 1 (2017)

handle is hein.taxfoundation/rmkshxfc0001 and id is 1 raw text is: Jul. 2017 The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) non-profit organization. @2017 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org Remarks by Scott Hodge to the Tax Fairness Conference Sponsored by the European Union Commission Brussels, Belgium Panel Topic: Corporates or Citizens-Who Should Bear the Burden of Taxation? Scott A. Hodge President, Tax Foundation Thank you for inviting me to bring a non-European perspective to the important question of who bears the burden of corporate taxation. I'm sure you've all heard the simple axiom, corporations don't pay taxes, people do. It's no different from the concept that a pack of cigarettes doesn't pay tobacco taxes, smokers do. Similarly, cars don't pay gasoline taxes, drivers do, and houses don't pay property taxes, homeowners do. But that axiom addresses only the question of who directly pays the tax. The question for this panel is which party bears the economic burden of the corporate income tax-workers, shareholders, or consumers? I tend to think that over the long term, workers bear the lion's share of the corporate tax, and in my talk this morning I'd like to use the United States as a case study on how workers are ultimately harmed by bad corporate tax policy. I think one of the most important guides to understanding these issues is a study written by economists at the OECD in 2008 under the simple title of Tax and Economic Growth.' OECD economists set out to determine which taxes were most conducive to economic growth or, conversely, which taxes were most harmful for growth. After reviewing the economic literature and studying the economic performance of countries, they developed a hierarchy of tax harm. Corporate income taxes were found to be the most harmful taxes for economic growth, followed by individual income taxes, and consumption taxes, with property taxes found to be the least harmful to growth. 1 Asa Johansson, Christopher Heady, Jens Arnold, Bert Brys and Laura Vartia, Tax and Economic Growth: Economics Department Working Paper No. 620 (July 11, 2008), https://www.oecd.org/tax/tax-policy/41000592.pdf

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