Logo
Munich Personal RePEc Archive

Implementing corporate tax cuts at the expense of neutrality? A legal and optimisation analysis of fundamental reform in practice

Kayis-Kumar, Ann (2018): Implementing corporate tax cuts at the expense of neutrality? A legal and optimisation analysis of fundamental reform in practice. Published in: eJournal of Tax Research , Vol. 16, No. 1 (September 2018): pp. 201-235.

This is the latest version of this item.

[thumbnail of MPRA_paper_89769.pdf] PDF
MPRA_paper_89769.pdf

Download (1MB)

Abstract

Governments and policy-makers are increasingly faced with the trade-off of protecting their tax revenue bases while maintaining their international competitiveness. This is exemplified by the international trend of jurisdictions reducing their headline corporate tax rates, which is often justified on the basis that these cuts will lead to improved efficiency and integrity outcomes. This article explores whether it is more efficient to implement corporate tax cuts or an alternative reform such as an economic rent tax which may better achieve the tax policy goals of efficiency and integrity.

In doing so, this article bridges the gap between applied legal research, economic theory and practical optimisation modelling. Specifically, this research presents a simulation analysis of the behavioural responses of a tax-minimising multinational enterprise to both existing and proposed tax regimes and compares efficiency and integrity outcomes upon implementing corporate tax cuts. This is complemented by a legal comparative analysis featuring case studies of an economic rent tax; namely, the Allowance for Corporate Equity (ACE) as introduced in Belgium and Italy. These case studies will focus on the political hurdles to implementing and sustaining these reforms, which will highlight key lessons learnt from the implementation of the ACE in practice.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.