Corporate income tax reforms and international tax competition
UNSPECIFIED (2002) Corporate income tax reforms and international tax competition. In: 35th Panel Meeting on the International Role of the European Single Currency, MADRID, SPAIN, APR 12-13, 2002. Published in: ECONOMIC POLICY (35). 449-+.Full text not available from this repository.
This paper analyses the development of taxes on corporate income in EU and G7 countries over the last two decades. We establish a number of sylizedfacts about their development. Tax-cutting and base-broadening reforms have had the effect that, on average across EU and G7 countries, effective tax rates on marginal investment have remained fairly stable, but those on more profitable investments have fallen. We discuss two possible explanations of these solized facts arising from alternative forms of tax competition. First, governments may be responding to a fall in the cost of income shifting, which puts downward pressure on the statutory tax rate. Second, reforms are consistent with competition for more profitable projects, in particular those earned by multinational firms.
|Item Type:||Conference Item (UNSPECIFIED)|
|Subjects:||H Social Sciences > HC Economic History and Conditions|
|Journal or Publication Title:||ECONOMIC POLICY|
|Publisher:||BLACKWELL PUBL LTD|
|Official Date:||October 2002|
|Number of Pages:||46|
|Title of Event:||35th Panel Meeting on the International Role of the European Single Currency|
|Location of Event:||MADRID, SPAIN|
|Date(s) of Event:||APR 12-13, 2002|
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