The political economy of corporate tax harmonization — Why do European politicians (dis)like minimum tax rates?
Steffen Osterloh () and
Friedrich Heinemann ()
European Journal of Political Economy, 2013, vol. 29, issue C, 18-37
Setting minimum tax rates is a well discussed way of mitigating pressure from tax competition. This paper investigates which motives shape the support for a minimum corporate tax among politicians. We make use of a unique data base: a survey among members of the European parliament. Our results confirm that the politicians' ideology as well as individual characteristics such as educational background exert a major influence. Moreover, several predictions regarding national interests are derived from various standard tax competition models. These hypotheses are partly supported by the data; in particular, different national preferences towards social equality shape the support. A comparison with survey results from the German Bundestag reveals that German politicians on the national level do not show different attitudes towards tax rate harmonization.
Keywords: Company taxation; Tax harmonization; Political economy; European Parliament (search for similar items in EconPapers)
JEL-codes: D78 H25 H87 (search for similar items in EconPapers)
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Working Paper: The Political Economy of Corporate Tax Harmonization: Why Do European Politicians (Dis)like Minimum Tax Rates? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:29:y:2013:i:c:p:18-37
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