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When the Celtic Tiger relaxed its corporate tax bite: An analysis of effects on top and upper middle income shares in Ireland

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  • Uliczka, Niklas

Abstract

In 1997, the Irish government introduced reforms to revolutionize corporate taxation, with focus on creating opportunities for tax neutrality and on reducing the standard corporate tax rate. Using the synthetic control method, findings suggest that the reforms had large positive effects on the income share of the top 1% and sizeable negative effects on the upper middle 40% of income earners. Such heterogeneous effects indicate increasing income inequality due to targeted corporate tax incentives.

Suggested Citation

  • Uliczka, Niklas, 2023. "When the Celtic Tiger relaxed its corporate tax bite: An analysis of effects on top and upper middle income shares in Ireland," Economics Letters, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:ecolet:v:222:y:2023:i:c:s0165176522004074
    DOI: 10.1016/j.econlet.2022.110933
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    References listed on IDEAS

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    More about this item

    Keywords

    Income inequality; Top income shares; Corporate tax; Synthetic control; Celtic Tiger;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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