EconPapers    
Economics at your fingertips  
 

The Effect of Tax Rates and Tax Bases on Corporate Tax Revenues: Estimates with New Measures of the Corporate Tax Base

Laura Kawano and Joel Slemrod

No 18440, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Several recent analyses have suggested that the revenue-maximizing corporate tax rate resides in the low-30's. We challenge this result by re-examining this relationship using a new compilation of changes in corporate tax base definitions for OECD countries between 1980 and 2004. By considering tax base changes in addition to tax rate changes, we can address the estimation bias that applies to tax rates absent their consideration. We find that the relationship between corporate tax rates and corporate tax revenues is tenuous. The large behavioral response to corporate tax rates implied in the literature does not obtain when accounting for persistent differences in tax policy and business environments across countries.

JEL-codes: H25 (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Published as The Effect of Tax Rates and Tax Bases on Corporate Tax Revenues: Estimates with New Measures of the Corporate Tax Base, Laura Kawano, Joel Slemrod. in Business Taxation (Trans-Atlantic Public Economics Seminar) , Devereux and Gordon. 2014

Downloads: (external link)
http://www.nber.org/papers/w18440.pdf (application/pdf)

Related works:
Working Paper: The Effect of Tax Rates and Tax Bases on Corporate Tax Revenues: Estimates with New Measures of the Corporate Tax Base (2012) Downloads
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:nbr:nberwo:18440

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w18440

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2024-06-08
Handle: RePEc:nbr:nberwo:18440