Peter Egger, Katharina Erhardt, Christian Keuschnigg, 25 February 2019

The effect of taxes on firm-level investments is very heterogeneous. This column shows that the impact of corporate taxation is up to 70% higher for entrepreneurial firms than for managerial ones, while dividend taxation negatively affects the investment of financially constrained firms but entails no significant impact on cash-rich firms. Policy should provide targeted tax relief to the most constrained firms, where taxes are most harmful, if other policies are unsuccessful in improving access to external funds.

Peter Egger, Nora Strecker, Benedikt Zoller-Rydzek, 24 September 2018

The OECD estimates that more than $100 billon is lost each year to tax avoidance by MNEs. One way that firms do this is by using their size and mobility to bargain for tax breaks. This column uses French data to identify the nature of such bargaining. It finds that the scale of the projected tax payment accounts for 41% of the tax break, and a credible threat to relocate accounts for the rest.

Rachel Griffith, Helen Miller, 30 June 2011

Governments around the world are grappling with the question of how to tax the income from intellectual property. This column asks whether offering tax breaks – called Patent Boxes after the box companies must tick on their tax forms – will lead to a race to the bottom across Europe and who, if anyone, benefits.

Michael Devereux, Albert van der Horst, Simon Loretz, Leon Bettendorf, 20 March 2011

The European Commission has launched proposals to radically reform corporate income tax in the EU, with a system known as the Common Consolidated Corporate Tax base. This column suggests that this reform would have significant effects on individual member states, but only small effects at the aggregate level in terms of employment, GDP or efficiency. It adds that if tax rates were also harmonised and the tax base included an allowance for corporate equity, the economic benefits could be far greater.

Alison Felix, James Hines, 14 December 2009

Painful tax increases will be necessary to restore fiscal balance after exiting the crisis. This column shows that wages are higher in US states with lower corporate income taxes – a reminder that efforts to tax firms more heavily create burdens that will be distributed among stakeholders, including many groups that governments otherwise attempt to help, such as workers.

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