Corporate tax cuts: examining the record in advanced economies

Simeon Djankov

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This discussion paper examines evidence from 39 economies where cuts in the corporate income tax rate have been implemented since 1986. The paper also summarizes the findings of nearly two dozen studies on the fiscal effects of corporate tax rate cuts. The main conclusion from these analyses is that radical tax rate cuts, of 15 or more percentage points, are rare and usually happen only after major fiscal disruptions that weaken the political influence of business sectors that oppose reductions in the tax preferences from which they have benefited. In contrast, more modest corporate tax cuts of about 10 percentage points are typically effected in normal economic conditions and are practical to implement as they do not trigger large fiscal imbalances.

JEL-codes: G30 H20 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2017-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://eprints.lse.ac.uk/118975/ Open access version. (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:118975

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager (lseresearchonline@lse.ac.uk).