Who Bears the Cost of Taxing the Rich? An Empirical Study on CEO Pay

43 Pages Posted: 28 Feb 2018

See all articles by Martin Ruf

Martin Ruf

University of Tübingen

Julia Schmider

Independent

Date Written: February 19, 2018

Abstract

An increase in the top marginal tax rate by 10 percentage points raises gross CEO pay at the rm level by 12.0 %. CEOs use their bargaining power to shift their tax load partly to the employer. More powerful CEOs - measured in terms of their function or level of pay - are more successful in doing so. A higher taxation of CEO pay may thus not necessarily be the appropriate measure to reduce the increasing income inequality in the U.S. largely due to the rise of top executive compensation in large U.S. corporations.

Suggested Citation

Ruf, Martin and Schmider, Julia, Who Bears the Cost of Taxing the Rich? An Empirical Study on CEO Pay (February 19, 2018). Available at SSRN: https://ssrn.com/abstract=3126061 or http://dx.doi.org/10.2139/ssrn.3126061

Martin Ruf (Contact Author)

University of Tübingen ( email )

Nauklerstraße 47
Tübingen, D-72076
Germany

HOME PAGE: http://www.uni-tuebingen.de/wiwi/steuern

Julia Schmider

Independent

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
96
Abstract Views
628
rank
334,469
PlumX Metrics