文章基本信息

标题：Capital Taxation and Imperfect Competition: ACE vs. CBIT
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作者：Kurt R. Brekke ; Armando J.Garcia Pires
期刊名称：Discussion Papers / Norwegian School of Economics and Business Administration
印刷版ISSN：0804-6824
出版年度：2014
卷号：2014
出版社：Bergen
摘要：This paper studies the market and welfare effects of two main tax reforms – theCorporate Business Income Tax (CBIT) and the Allowance for Corporate Equitytax (ACE). Using an imperfect-competition model for a small open economy, itis shown that the well-known neutrality property of ACE does not hold. Bothcorporate tax regimes distort market entry and equilibrium prices. A main result isthat a small open economy should levy a positive source tax on capital in marketswith free firm entry. Which tax system is better from a welfare point of view,depends on production technology, the competitive effects of ACE and CBIT, andwhether entry is excessive or suboptimal at the given corporate tax rate. Imposingtax income neutrality yields a higher corporate tax rate with ACE, which increasesthe scope for CBIT to be welfare improving
关键词：Optimal corporate taxation; Corporate tax reform; Imperfect competition;ACE; CBIT