The Divergence Between Book Income and Tax Income

in J. Poterba (ed.) Tax Policy and the Economy 17 (Cambridge, MA: MIT Press, 2003), 169-206. This paper is a revision of NBER Working Paper 8866, entitled "The Corporate Profit Base, Tax Sheltering Activity, and the Changing Nature of Employee Compensation."

This paper examines the evolution of the corporate profit base and the relationship between book income and tax income for U.S. corporations over last two decades. 

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