Corporate tax revenues in OECD countries
AbstractThis paper studies variation among OECD countries in the size of corporate income tax revenues relative to GDP over the time period 1979–2002. A decomposition explains such variation as a function of the statutory tax rate, the breadth of the tax base, corporate profitability, and the share of the corporate sector in GDP. Empirical results indicate a parabolic relationship between tax rates and revenues, implying a revenue-maximizing corporate income tax rate of 33% for the whole sample. This revenue-maximizing rate is found to decrease as economies are smaller and more integrated with the world economy. Copyright Springer Science + Business Media, LLC 2007
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Bibliographic InfoArticle provided by Springer in its journal International Tax and Public Finance.
Volume (Year): 14 (2007)
Issue (Month): 2 (April)
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Web page: http://www.springerlink.com/link.asp?id=102915
Corporate income taxation; Corporate income tax revenues; World tax competition; Multinational corporations;
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