—particularly through a destination-based cash flow tax (DBCFT)—this paper studies other forms of efficient destination-based taxes … finds that the DBACC and DBACE reduce profit shifting and tax competition, but cannot fully eliminate them, with the DBACE … destination-based tax system, we conclude that advantages of the DBCFT are likely to outweigh the transitional advantages of the …

We exploit exogenous variation in tax notches created by controlled foreign corporation (CFC) rules to better … estimate an unbiased profit-shifting semi-elasticity of about 0.22. Removing incentives to shift profits to particular low-tax … locations leads to profit relocation to ‘next-best’ low-tax countries, allowing firms to circumvent domestic taxation. We do not …

We study the consequences of multinational tax avoidance on the structure of government tax revenues. To motivate our … analysis, we show that countries with high revenue losses due to profit shifting have lower corporate tax revenues and rates … and higher indirect tax revenues and rates. To establish causality, we use German municipal data and analyse how changes …

evidence that corporate tax cuts lead to increases in income inequality. This result is robust across regression, matching, and … IRS to explore mechanisms behind this result. We find tax cuts lead to higher income for both top and bottom earners, but …, while all earners appear to benefit from a corporate tax cut, the relation between tax cuts and inequality is positive, in …

How did the rise of multinational enterprises (MNEs) put pressure on the prevailing international corporate tax … framework? MNEs, and firms with market power, are not new phenomena, nor is the corporate income tax, which dates to the early … triggered unprecedented recent concerns about vulnerabilities in international tax arrangements and the taxation of MNEs? This …

This paper argues that tax avoidance by large corporations has contributed to the 25% increase in concentration among U ….S. firms since the mid-1990s. Corporate tax avoidance gives large firms a competitive edge, which translates into larger market … the causal impact of tax avoidance on firm-level sales. Had firms not resorted to tax avoidance in 2017, our results imply …

This paper estimates the causal effect of corporate tax hikes on firm investment based on more than 1,400 local tax … study how tax hikes induce firms to revise their investment decisions. On average, the share of firms that invest less than … previously planned increases by three percentage points after a tax hike. This effect is twice as large during recessions …

What do small firms do when given an income tax cut? We address this question by examining the consequences of a sharp … reduction in the corporate income tax rate for small- and micro-profit enterprises (SMPE) in China based on confidential tax … respond to the tax cut. The tax cut induced more SMPEs to register, especially those in financially constrained sectors …

This paper studies how corporate tax hikes transmit across countries through multinationals’ internal networks of … subsidiaries. We build a parsimonious multicountry model to underscore two opposing spillover effects: While tax competition … subsidiary-level data and exogenous corporate tax hikes, we find that local business units cut investment by 0.4% for a 1 …

The recent international agreement on a minimum effective corporate tax rate marks a profound change in global tax … strategic responses to a minimum tax, which—–the policy objective being to change the rules of tax competition game … calibration plausibly suggest sizable scope for minima that are Pareto-improving, benefiting low tax countries as well as high tax …