Taxes Depress Corporate Borrowing: Evidence from Private Firms
利用州企业所得税税率变化，发现税收减免后小型私营企业的杠杆率上升，因为税收减免提高了资本生产率并促进了杠杆使用，同时降低了违约风险和信用利差。
Abstract We use variation in state corporate income tax rates to re-examine the relation between taxes and corporate leverage. Contrary to prior research, corporate leverage rises after tax cuts for small private firms. An estimated dynamic equilibrium model shows that tax cuts make capital more productive and spur the use of leverage. Tax cuts also produce more distant default thresholds and lower credit spreads. These effects outweigh the lower interest tax deduction and lead to higher optimal leverage choices, especially for firms with flexible investment policies. The presence of the interest tax deduction raises consumer welfare in equilibrium.