Brekke, Kurt R.; Garcia-Pires, Armando J.; Schindler, Dirk - CESifo - 2014
shown that the well-known neutrality property of ACE does not hold. Both corporate tax regimes distort market entry and … effects of ACE and CBIT, and whether entry is excessive or suboptimal at the given corporate tax rate. Imposing tax income … neutrality yields a higher corporate tax rate with ACE, which increases the scope for CBIT to be welfare improving. …