Natixis - Why does tax competition take place via the taxation of corporate earnings and not via other taxes?

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Natixis

Patrick Artus

Why does tax competition take place via the taxation of corporate earnings and not via other taxes?

OECD countries engage in tax competition by lowering taxes on corporate earnings , but not via other taxes (direct taxes on households, social contributions of households or companies). This choice is strange, because the only tax which seems to have an impact on the employment rate, the structural unemployment rate and growth is corporate social contributions. A low corporate tax rate does not seem to be associated with any overall structural improvement in a country's economic situation.

27/08/2018 7 EN

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Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

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Patrick Artus

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Why does tax competition take place via the taxation of corporate earnings and not via other taxes?

Japan: Macro and geopolitics brew winners in industrials, IT and financials

Section 899: A tool to increase revenue or to change foreign tax policy?

ECB Takes Summer Pause to Preserve Monetary Policy Flexibility

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