When the Celtic Tiger relaxed its corporate tax bite: An analysis of effects on top and upper middle income shares in Ireland

Niklas Uliczka

Economics Letters, 2023, vol. 222, issue C

Abstract: In 1997, the Irish government introduced reforms to revolutionize corporate taxation, with focus on creating opportunities for tax neutrality and on reducing the standard corporate tax rate. Using the synthetic control method, findings suggest that the reforms had large positive effects on the income share of the top 1% and sizeable negative effects on the upper middle 40% of income earners. Such heterogeneous effects indicate increasing income inequality due to targeted corporate tax incentives.

Keywords: Income inequality; Top income shares; Corporate tax; Synthetic control; Celtic Tiger (search for similar items in EconPapers)
JEL-codes: D63 H25 O38 O52 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:222:y:2023:i:c:s0165176522004074

DOI: 10.1016/j.econlet.2022.110933

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