Brekke, Kurt R.; Pires, Armando J. Garcia; Schindler, Dirk - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2014
This paper studies the market and welfare effects of two main tax reforms – the Corporate Business Income Tax (CBIT) and the Allowance for Corporate Equity tax (ACE). Using an imperfect-competition model for a small open economy, it is shown that the well-known neutrality property of ACE does...