Corporate Income Tax and Economic Distortions

No 15, Taxation Papers from Directorate General Taxation and Customs Union, European Commission

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: European Union; Corporate taxation; distortions; tax efficiency (search for similar items in EconPapers)
JEL-codes: H25 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2009-04
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in Bulletin de Documentation du SPF Finances, 68(3): 91-106.

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Related works:
Working Paper: Corporate Income Tax and Economic Distortions (2008)
Working Paper: Corporate Income Tax and Economic Distortions (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:tax:taxpap:0015

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