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Corporate Income Tax and Economic Distortions

  • Gaëtan Nicodème

As any non-lump-sum tax, corporate income taxation creates distortions in economic choices, reducing its efficiency. This paper reviews some of these domestic and international distortions and their most recent estimates from the economic literature. Distortions originating from income shifting between capital and labour sources, profit shifting across jurisdictions, the effects of taxation on business location and foreign direct investment are the major sources of distortions.

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File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/53961/1/RePEc_sol_wpaper_08-033.pdf
File Function: RePEc_sol_wpaper_08-033
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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 08-033.RS.

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Length: 20 p.
Date of creation: 2008
Date of revision:
Publication status: Published by:
Handle: RePEc:sol:wpaper:08-033
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