In their famous Mirrlees review (2011) on reforming the tax system for the 21st century, the authors put forward the introduction of an allowance for corporate equity regime. In recent years, several countries introduced an ACE regime. The main feature of an ACE regime is that it removes tax...

Contrary to some commentators' perceptions, the economic case for corporate tax rate reduction does not involve the hope that corporations will “use” their tax savings to make additional investments, pay higher wages, or hire additional employees. Profit-maximizing corporations look at the...