Eichfelder, Sebastian; Hechtner, Frank; Hundsdoerfer, Jochen - 2015
This paper addresses the question of how firms react to tax incentives in a formula apportionment (FA) tax regime … factor through tax avoidance strategies. Analyzing FA tax effects of the German local business tax with payroll expense as … production factors, we observe significant tax effects on labor input at the intensive margin but not on labor input at the …
