This paper analyses capital tax competition between jurisdictions of different size when multinational firms can shift some fraction of their tax base between them. For the case of revenue maximizing governments, we show that introducing profit shifting will not generally increase downward pressure on tax rates. We find that profit shifting decreases the tax-base elasticity of the low tax juris...

We use a firm-CEO assignment framework to model the market for CEO effective labor. In the model’s equilibrium more talented CEOs match with and supply more effort to larger firms. Taxation of CEO incomes affects the equilibrium pricing of CEO effective labor and, hence, spills over and affects firm profits. Absent the ability to tax profits or a direct concern for firm owners, a standard presc...

We construct a new database of extensive margin changes to multiple aspects of corporate tax bases for OECD countries between 1980 and 2004. We use our data to systematically document the tendency of countries to implement policies that both lower the corporate tax rate and broaden the corporate tax base. This correlation informs our interpretation of previous estimates of the relationship betw...

This short paper provides an example which shows that the type of the spillover effect from one individual to another (and hence whether we under-tax, or overtax, in a Nash equilibrium relative to a cooperative one) can be reversed when we introduce dynamics into a model with public goods. Specifically, the spillover effect changes from positive (which is the static, traditional case) to negati...

The R&E tax credit has never been effective and subsequent attempts to restructure it have not addressed the major deficiencies. Moreover, in the 25 years since the R&E tax credit was enacted, a steadily increasing number of countries have implemented or expanded competing tax incentives, which in many cases are better structured and larger in size. As a result, the relative impact of the US cr...

This paper investigates the effectiveness of investment incentives and corporate income taxes in influencing production and investment decisions in the Turkish electrical machinery, non-electrical machinery and transportation equipment industries. Three tax instruments are considered; the corporate income tax (CIT), the investment tax allowance (ITA), and the capital cost allowance (CCA). The r...

We show that firms' ability to avoid taxes is affected by the quality of their internal information environment, with lower effective tax rates (ETRs) for firms that have high internal information quality. The effect of internal information quality on tax avoidance is stronger for firms in which information is likely to play a more important role. For example, firms with greater coordination ne...

The phenomenon in Indonesia regarding the level of taxpayer compliance is still relatively low when compared to growth number businesses. This research aims at determining perception taxpayers micro, small and medium enterprises after changes tax rates government regulation. method used was descriptive qualitative statistical analysis. population MSMEs Brebes District, sample taken 5 that could...

This paper examines the role of evidence in drawing up the recommendations for tax reform in the Mirrlees Review. The arguments are organised loosely under five related headings: (i) Key margins of adjustment, (ii) Measurement of effective tax rates, (iii) The importance of information and complexity, (iv) Evidence on the size of responses, and (v) Implications from theory for tax design. Altho...

Theory predicts that strategically-determined tax rates induce negative externalities across countries in relative prices, the wealth distribution and tax revenue. This paper studies the interaction of these externalities in a dynamic, general equilibrium environment and its effects on quantitative outcomes of tax competition in one-shot games over capital income taxes between two governments t...