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Will Corporate Income Taxation Survive?

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Summary

This paper explores the future of corporate income taxation, with special reference to the Netherlands. We review the empirical literature on a variety of distortions and arbitrage opportunities and pay due attention to effect sizes. An attempt is made to compare the size of various distortions in terms of the ex-post revenue impact of a corporate tax reduction. Thus, we learn which distortions impose the most serious threat to government revenue. This integrative approach allows us to understand recent developments in corporate tax regimes in the EU.

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Authors and Affiliations

  1. CPB, CESifo and Tinbergen Institute, Erasmus University Rotterdam, P.O. Box 1738, 3000, DR Rotterdam

    Ruud A. De Mooij

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  1. Ruud A. De Mooij
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Correspondence to Ruud A. De Mooij.

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Erasmus University Rotterdam, CPB, CESifo and Tinbergen Institute. Corresponding address: P.O. Box 1738, 3000 DR Rotterdam, e-mail: demooij@few.eur.nl. I thank Leon Bettendorf, Joeri I thank Leon Bettendorf, Joeri Gorter and Gerbert Romijn for their support and discussion in constructing Table 3 and Sijbren Cnossen and two anonymous referees for useful comments.

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De Mooij, R.A. Will Corporate Income Taxation Survive?. De Economist 153, 277–301 (2005). https://doi.org/10.1007/s10645-005-1989-5

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