In the last few years, the UK has adopted a fiercely competitive business tax policy by reducing the general tax burden on business and by expanding individual regimes targeted to mobile factors: CFC rules, interest deductibility rules and the Patent Box have made the UK very attractive for...

We examine how far taxes on corporate income are directly shifted onto the workforce. We use data on 55,082 companies located in nine European countries over the period 1996–2003. We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added...

A stylised model is provided to show how the direct effect of corporate income tax on wages can be identified in a bargaining framework using cross-company variation in tax liabilities, conditional on value added per employee. Using data on 55,082 companies located in nine European countries...