Are Corporate Tax Burdens Racing to the Bottom in the European Union?
AbstractThis paper tests the central predictions of the theoretical tax competition literature for capital tax rates for a panel of European Union countries, notably a race to the bottom in corporate tax burdens. In contrast to the previous empirical literature, empirical support for increasing capital mobility to be resulting in a reduction in corporate tax burdens is found. The results also suggest that other factors driving the corporate tax burden should not be neglected and may provide substantial counterweight to tax competition forces
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Bibliographic InfoPaper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 04-04.
Length: 43 pages
Date of creation: Feb 2004
Date of revision:
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Tax competition; Capital taxation; Corporate tax burden; European financial integration; Capital mobility;
Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- F2 - International Economics - - International Factor Movements and International Business
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-23 (All new papers)
- NEP-EEC-2004-02-23 (European Economics)
- NEP-PBE-2004-02-23 (Public Economics)
- NEP-PUB-2004-02-29 (Public Finance)
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- Ozlem Onaran & Valerie Boesch & Markus Leibrecht, 2012. "How Does Globalization Affect The Implicit Tax Rates On Labor Income, Capital Income, And Consumption In The European Union?," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 880-904, October.
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