Title: Partisan politics and the impact on corporate tax fees

Authors: James S. White; Barbara S. White; Sherwood Lane Lambert

Addresses: Department of Accounting and Finance, University of West Florida, Pensacola, Florida, USA ' Department of Accounting and Finance, University of West Florida, Pensacola, Florida, USA ' Department of Accounting and Finance, University of West Florida, Pensacola, Florida, USA

Abstract: This study evaluates tax service fees from 2003 to 2020, considering the impact of partisan politics on the level of fees paid. We review the major tax provisions as they impact the level of corporate taxation and the potential cost of tax minimisation strategies. The results find that the lowest average yearly tax fees occurred (2017-2020) after Republican President Trump enacted a major reduction in corporate tax rates to 21% from 2017 to the present. During Republican President Bush's last six years (2003-2008), the average yearly tax fees were higher than during Democratic President Obama's eight-year term (2009-2016). The results suggest that while the political party and the partisan nature of tax policy would seem to impact the costs for tax services, the largest impact comes from actions taken by specific presidents in tax policy.

Keywords: corporate tax rate; tax policy; tax fees; partisan politics; tax provisions; political party.

DOI: 10.1504/EG.2024.141854

Electronic Government, an International Journal, 2024 Vol.20 No.6, pp.661 - 679

Received: 16 Sep 2023
Accepted: 30 Dec 2023
Published online: 02 Oct 2024 *

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