Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason … investment opportunities to a larger extent. (ii) Taxes which are neutral in a neoclassical world, still restrict expansion … investment of constrained firms by reducing free cash-flow and thereby discourage innovation. (iii) A revenue neutral increase in …

demonstrates the neutrality properties of the reform with respect to investment, firm financial decisions and organizational choice …. Tax rates are chosen to prevent income shifting from labor to capital income. The reform decisively strengthens investment …