Abstract
This paper estimates state corporate tax incidence using new data and methods for estimating the effects on profits. Extending Suarez Serrato and Zidar (2016), we develop two identification approaches that use the effects on incumbent firm labor demand and local productivity. We estimate these effects using data from census, show how they identify parameters, and provide incidence estimates using reduced-form and structural approaches. Across these approaches, we find that owners bear a substantial portion of incidence. Our central estimate is that firm owners bear half of the incidence, while workers and landowners bear 25-40 percent and 10-15 percent, respectively.
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