We propose that U.S. corporate taxation revenue, 1981-1998, responded to political and economic forces in ways consistent with a partisan and organizational view of politics, but inconsistent with a structural dependence view. We employ Vector Error Correction (VEC) models to examine our hypotheses and offer a new method for generating impulse response function boundaries in VEC models. We find that short-term increases in corporate tax revenue followed from Democratic Presidential Administrations, decreasing business political activity, and increasing economic growth, trade, and inward foreign direct investment. That U.S. corporate tax policy is partly determined by partisan and organizational forces as well as by domestic economic forces is a standard theoretical view. Scholars find that Democratic Presidential Administrations have differed from Republican Administrations in that the former tended to increase the tax burdens of corporate taxpayers. Other studies report that increasing business political activity has had an ameliorating effect on business tax burdens. On the economic side, corporate tax policy is counter-cyclical, investment inducing, and linked with growth and investment in long-run structural relationships. In at least two important ways, however, the structure of the American economy differed in the 1980s and 1990s from earlier periods. First, the U.S. economy internationalized, with the oil shocks of th
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