Corporate Tax Rate Reduction Is More Beneficial Than You Think

Abstract

The way economists usually calculate the effects of corporation tax on the economy is flawed. The reduction in corporation tax is likely to pay itself back to the public sector, when the full effects of the change are taken into account. However, the effect is not immediate.

Publication info

Series
ETLA Muistio - ETLA Brief 151
Date
30.12.2024
Keywords
Corporate tax, Dynamic effects
ISSN
2323-2463
JEL
H2, H3, H6, E2, E6
Pages
10
Language
Finnish