|
EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/24723
|
| | |
| Title: | | Rate Cutting Tax Reforms and Corporate Tax Competition in Europe  |
| Authors: | | Heinemann, Friedrich Overesch, Michael Rincke, Johannes |
| Issue Date: | | 2008 |
| Series/Report no.: | | ZEW Discussion Papers 08-028 |
| Abstract: | | While there is a large and growing number of studies on the determinants of corporate tax rates, the literature has so far ignored the fact that the behavior of governments in setting tax rates is often best described as a discrete choice decision problem. We set up an empirical model that relates a government's decision whether to cut its corporate tax rate to the country's own inherited tax and taxes in neighboring countries. Using comprehensive data on corporate tax reforms in Europe since 1980, we find evidence suggesting that the position in terms of the tax burden imposed on corporate income relative to geographical neighbors strongly affects the probability of rate cutting tax reforms. Countries are particularly likely to cut their statutory tax rate if the inherited tax is high and if they are exposed to low-tax neighbors. |
| Subjects: | | Tax reform tax competition corporate taxes |
| JEL: | | H25 H20 H71 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/24723
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|