Accepted by Lillian Fawn Mills. Klassen is grateful to the Social Sciences and Humanities Research Council of Canada for support. Laplante gratefully acknowledges the support of the Terry-Sanford Research Award from the Terry College of Business and the J.M. Tull School of Accounting. We also thank Lillian Mills (editor); two anonymous referees; Ben Ayers, Linda Bamber, Linda Krull, Kevin Markle, Sean McGuire, Terry Shevlin, Ryan Wilson; members of the Texas Tax Readings group; 2008 Canadian Tax Policy Symposium participants; 2009 American Taxation Association Midyear Meeting participants; 2009 American Accounting Association Meeting participants; 2009 National Tax Association Conference participants; and workshop participants at Florida International University, Michigan State University, Texas A&M University, and University of Connecticut for helpful comments.