Corporate Income Tax and Economic Distortions

Gaëtan J.A. Nicodème and Gaëtan J.A. Nicodeme
Authors registered in the RePEc Author Service: Gaetan J.A. Nicodeme

No 2477, CESifo Working Paper Series from CESifo

Abstract: 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.

Keywords: corporate taxation; distortions; tax efficiency (search for similar items in EconPapers)
JEL-codes: H25 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Corporate Income Tax and Economic Distortions (2009)
Working Paper: Corporate Income Tax and Economic Distortions (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2477

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