Disparities in average rates of company tax across industries
AbstractThe effect of company tax arrangements across Australian industries has received relatively little attention.This article finds evidence that average tax rates vary considerably across industries. The evidence is found to be reasonably robust with external validation used to confirm results. The average tax rate is found to be relatively high in the finance and insurance industry and relatively low in the most capital-intensive industries, such as electricity, gas and water, and mining. Variations in average tax rates across industries would be expected to have an impact on the way investment is allocated across industries, potentially with a negative impact on productivity and growth. Changes to the company tax rate would be expected to have differing impacts across industries arising from the variations in average tax rates.
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Bibliographic InfoArticle provided by Treasury, Australian Government in its journal Economic Roundup.
Volume (Year): (2010)
Issue (Month): 2 (July)
corporate tax; tax incidence;
Find related papers by JEL classification:
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan Auerbach & Michael P. Devereux & Helen Simpson, 2007.
"Taxing Corporate Income,"
CESifo Working Paper Series
2139, CESifo Group Munich.
- Alan J. Auerbach & Michael P. Devereux & Helen Simpson, 2008. "Taxing Corporate Income," NBER Working Papers 14494, National Bureau of Economic Research, Inc.
- Alan Auerbach & Michael P Devereux & Helen Simpson, 2007. "Taxing corporate income," Working Papers 0705, Oxford University Centre for Business Taxation.
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