Work

Pareto-Improving Minimum Corporate Taxation

Year: 2021

Type: article

Abstract: The recent international agreement on a minimum effective corporate tax rate marks a profound change in global tax arrangements. The appropriate level of that minimum, however, has been, and remains, extremely contentious. This paper explores the strategic responses to a minimum tax, which—the policy objective being to change the rules of tax competition game--—are critical for assessing the design and welfare impact of, and prospects for, this fundamental policy innovation. Analysis and calibration plausibly suggest sizable scope for minima that are Pareto-improving, benefiting low as well as high tax countries, over the uncoordinated equilibrium.

Source: IMF Working Paper

DOI: 10.5089/9781557756183.001

Authors: Shafik Hebous, Michael Keen

Institutions: Institute for Fiscal Studies, University of Oxford, Tokyo College, The University of Tokyo, The University of Tokyo

Language: English

Topic: Corporate Taxation and Avoidance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W3209131877

FWCI: 3.502

Cites: 26

Cited by: 13

Related to: 10