Are your firm's taxes set in Warsaw? Spatial tax competition in Europe

Arbeitspapier

Corporate tax rates in Europe have been falling rapidly; as a consequence tax competition within the EU is fiercer than in the rest of the OECD. This paper analyzes heterogeneity in corporate tax rate changes between EU-15 countries as a function of the proximity to the EU-10 new member states. The average corporate tax rate in the new member states has always been considerably lower than the average in the EU-15 countries. Their entry into the EU eliminated capital barriers, in principle allowing firms to locate in one of the new EU-10 with full access to the European Market. Our results indicate that EU-15 countries physically closer to Central-Europe experienced more tax competition. Next we use a spatial regression framework to more firmally test the hypothesis that distance to a low tax region affects countries' tax reaction functions.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: LICOS Discussion Paper ; No. 216

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT) ; Intergovernmental Relations; Federalism; Secession ; Fiscal Policies and Behavior of Economic Agents: Other
• Thema: Spatial tax competition ; Corporate taxes ; fiscal reaction function ; Unternehmensbesteuerung ; Steuerwettbewerb ; Betriebliche Standortwahl ; EU-Erweiterung ; Steuerreform ; EU-Staaten (Osteuropa) ; EU-Staaten ; Steuerwettbewerb

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Crabbé, Karen ; Vandenbussche, Hylke
• Ereignis: Veröffentlichung
• (wer): Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance
• (wo): Leuven
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/74948
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ