Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107319
Authors: 
Cnossen, Sijbren
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 5108
Abstract: 
This paper explores the taxation of corporations in the wider context of capital income taxation. The pros and cons of various income-based and cash-flow forms of corporation tax (CT) are discussed. The paper concludes that the dual income tax (DIT), which taxes all capital income at the proportional CT rate, is to be preferred over other forms of taxing capital income. The DIT is best attuned to the reality of capital mobility and is not held hostage by the higher tax on labour income. Levied at a uniform flat rate, the DIT minimizes opportunities for tax arbitrage.
Subjects: 
comprehensive business income tax
corporation tax
dividend relief systems
dual income tax
flat tax
cash flow taxation
JEL: 
G30
H24
H25
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.