01628cas a2200241 a 4500 AALejournalIMF000407 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451851120 1018-5941 BD-DhAAL BD-DhAAL Gordon, Roger. Do Tax Rates Encourage Entrepreneurial Activity? / Roger Gordon. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students When the top personal tax rates are above the corporate rate, high-income individuals have an incentive to reclassify their earnings as corporate rather than personal income for tax purposes. U.S. tax law at least imposes strict limits on the extent to which employees in publicly traded corporations can engage in such income shifting. However, entrepreneurs setting up new firms can easily reclassify their income for tax purposes. This tax incentive therefore favors entrepreneurial activity. The paper discusses how best to subsidize entrepreneurial activity while avoiding other economic distortions. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/088 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/088/001.1997.issue-088-en.xml IMF e-Library