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  • Cited by 9
Publisher:
Cambridge University Press
Online publication date:
August 2019
Print publication year:
2019
Online ISBN:
9781108779982
Series:
Elements in Public Economics

Book description

Existing corporate taxes distort many aspects of firm behavior. To the extent that the corporate tax rate is lower than personal tax rates, taxes favor corporate activity, and favor retaining earnings rather than paying earnings out to employees and investors. Multinationals can even avoid these taxes by shifting income into tax havens. Given the ease with which multinationals can evade tax, the existing income tax structure faces major pressures, as reflected in average statutory corporate tax rates halving in recent decades. The Element speculates on alternative tax structures that will avoid these problems.

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