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Title: What shapes corporate tax policy?

Citation Type: Miscellaneous

Publication Year: 2019

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Abstract: We investigate how business changes affect tax policy choices in 34 OECD countries over the last two decades. While we observe a general trend of decreasing tax rates, stable capital investment incentives, and stricter anti-tax avoidance rules over time, our results suggest that country-specific business change exposure can explain countries’ deviation from this trend. We provide evidence suggesting that, after the occurrence of a business change, smaller countries strategically use less stringent anti-tax avoidance rules to attract mobile capital. Smaller countries thus appear to opt for policy tools that are less salient and create indirect investment incentives (i.e., via less stringent anti-tax avoidance rules).

Url: http://indem.uc3m.es/pdf/1560524714-Jacob3.pdf

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Authors: Brühne, Alissa, I; Jacob, Martin; Schütt, Harm, H

Publisher: Otto Beisheim School of Management

Data Collections: IPUMS USA

Topics: Other

Countries: United States