Stock buybacks occur when a company repurchases shares of its own stock. In the corporate tax world, figuring out the revenue shortfall that results from tax shifting is even more complicated to calculate. We do know that US corporate tax revenue has declined dramatically over time; as of 2023, the Peterson Foundation estimates that federal corporate tax exclusions cost $161 billion. US corporate tax revenue after these exclusions totals 1.6 percent of gross domestic product (GDP), which is less than half of the Canadian level. If US corporate tax revenue were on a par with Canada, the federal government would collect over $400 billion a year more in corporate income tax.

Source: Forbes March 13, 2024 19:50 UTC