Category Tax economics

Why do people evade taxes?

In this post, I will look at what existing academic literature has to offer on questions of tax evasion and tax morale, in particular: Why do people evade taxes? And I’ll zoom in on how recent contributions adds to this scholarship.

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Are large firms really successfully lobbying for low tax rates?

My last attempt at a review of recent academic literature on a corporate tax income topic was well-received, so here’s round two in the “Are firms really…?” series. This time, I’ll take a look at another paper out of Oxford University in the context of an existing body of literature. Here, we are looking at […]

Are American firms really more tax aggressive?

Are multinational groups headquartered in the United States more aggressive in their tax planning compared to non-US competitors? That is, at least, a very popular strapline in tax circles. Negative media stories about the tax affairs of major US firms such as Apple, Amazon and Starbucks are often described as contributing factors to the OECD/G20 […]

The fiscal coin and reasonable expectations: Taxes as business costs or intra-economy transfers?

Are taxes on corporations business costs or intra-economy transfers? This is a oft-discussed question in debates about corporation taxes – academic, political as well as layman debates. And it is one with significant implications for tax policy. This blog is here to say: Both. Possibly. But mostly a transfer. The fiscal coin and taxes as […]

Power in Numbers: How Data Shapes the Tax Policy Arena

Since the first number value systems were invented around 3400 BC, numbers have played a central role in human society. Arguably, though, they have never been more important than they are today. We fiend for data, quantities, statistics and numbers to an astounding degree. We live in an almost fetishised data-heavy society. This applies to the tax […]

Discussing discussions around the corporate income tax

The corporate income tax is under pressure. A host of factors have contributed to economic, normative and political discussions on the need for corporate income taxation and its role in the architecture of national and international tax systems. Among the most persistent calls today is the lowering or scrapping of corporate income tax (CIT) altogether. And […]

We’re changing the equation of tax competition and corporate profit shifting

Within tax economics, one of the central arguments for tax competition and low(er) taxes on capital, including corporate profits, is that it leads to increased investment and growth (at least in some countries, mostly small open economies). Why? In short, we know that corporate tax rates and rate changes have behavioural effects. Capital income may […]