Corporate Tax Cuts and Business-Friendly Policies in the UK: A Review of Electoral Arguments during the 2015 Legislative Campaign

2017 ◽  
Author(s):  
Marc Pilkington
Keyword(s):  
Corporate Tax ◽  
The Uk ◽  
Tax Cuts

scholarly journals Measuring the Effects of Corporate Tax Cuts

2018 ◽  
Vol 32 (4) ◽  
pp. 97-120 ◽  
Author(s):  
Alan J. Auerbach
Keyword(s):  
Multinational Corporations ◽  
Income Tax ◽  
Capital Investment ◽  
Corporate Income Tax ◽  
Tax Law ◽  
Corporate Tax ◽  
The Law ◽  
Jobs Act ◽  
The Impact ◽  
Tax Cuts

On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA), the most sweeping revision of US tax law since the Tax Reform Act of 1986. The law introduced many significant changes. However, perhaps none was as important as the changes in the treatment of traditional “C” corporations—those corporations subject to a separate corporate income tax. Beginning in 2018, the federal corporate tax rate fell from 35 percent to 21 percent, some investment qualified for immediate deduction as an expense, and multinational corporations faced a substantially modified treatment of their activities. This paper seeks to evaluate the impact of the Tax Cuts and Jobs Act to understand its effects on resource allocation and distribution. It compares US corporate tax rates to other countries before the 2017 tax law, and describes ways in which the US corporate sector has evolved that are especially relevant to tax policy. The discussion then turns the main changes of the Tax Cuts and Jobs Act of 2017 for the corporate income tax. A range of estimates suggests that the law is likely to contribute to increased US capital investment and, through that, an increase in US wages. The magnitude of these increases is extremely difficult to predict. Indeed, the public debate about the benefits of the new corporate tax provisions enacted (and the alternatives not adopted) has highlighted the limitations of standard approaches in distributional analysis to assigning corporate tax burdens.

Thanks, neighbor! Stock market experience around significant European tax cuts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huabing Wang ◽  
Anne Macy
Keyword(s):  
Stock Market ◽  
Spillover Effect ◽  
Abnormal Returns ◽  
The Other ◽  
Stock Index ◽  
Corporate Tax ◽  
Cross Sectional ◽  
Content Type ◽  
Study Approach ◽  
Tax Cuts

PurposeThis paper analyzes the effect of corporate tax cuts on the competitiveness of the tax-cutting countries and neighbor countries.Design/methodology/approachThis study utilizes four significant corporate tax reforms among the OECD countries in Europe that offer a one-time tax cut of 6% or more. The short-term event study approach examines the stock index reactions for both the tax-cutting countries and the other countries. Multivariate fixed-effect regressions are employed to study the cross-sectional variations in the non-tax-cut countries.FindingsThis paper finds positive excess returns for Slovakia and Germany around the tax-cut passage. Multivariate analysis of stock market reactions of the non-tax-cutting countries reveals some evidence supporting both the positive spillover effect and the negative competitive loss effect. More advanced countries are more likely to experience higher abnormal returns, while higher tax countries are more likely to suffer lower abnormal returns. Other factors identified that might have influenced the effect of a foreign tax cut include the existing trade flows with the tax-cutting countries, whether the country has a common currency and the export orientation of the economy.Research limitations/implicationsThe findings are subject to sample-size issues. The lack of results for the other two countries is due to complicating events, as suggested by the further investigation of concurrent news events around the event days.Practical implicationsThe simultaneous analysis of the reform countries and the other countries in the region suggests that policymakers need to consider the relative positioning of their country vs the other countries in terms of economic development and current tax burdens when determining the optimal policy for their country or to respond to the tax policy changes in the other countries.Originality/valueThis study offers empirical evidence regarding the effect of corporate tax changes on competitiveness through the lens of stock markets' reactions, which depend on the net results of the spillover gain vs the competitive loss.

Corporate Behavioral Responses to the TCJA for Tax Years 2017-2018

2020 ◽  
Vol 73 (4) ◽  
pp. 1109-1134
Author(s):  
Tim Dowd ◽  
Christopher Giosa ◽  
Thomas Willingham
Keyword(s):  
Behavioral Responses ◽  
Corporate Tax ◽  
Corporate Response ◽  
Tax Rate ◽  
Tax Returns ◽  
Large Corporations ◽  
Jobs Act ◽  
Statutory Tax Rate ◽  
Tax Cuts

We analyze the initial corporate response to the 2017 enactment of the “Tax Cuts and Jobs Act” (TCJA). The TCJA changed many corporate tax provisions, including a reduction of the corporate statutory tax rate from 35 percent to 21 percent effective in 2018 and sweeping changes to the taxation of income earned abroad by U.S. corporations. Based on a sample of U.S. corporate tax returns, we find that corporations accelerated deductions into 2017 and delayed income into 2018, thereby minimizing their taxes. We estimate an income and deduction shifting tax elasticity of -0.11 and 0.08, respectively. Additionally, we study detailed tax returns of 81 large corporations to understand how those changes impacted them.

scholarly journals Corporate Tax Cuts for Small Firms: What Do Firms Do?

2021 ◽  
Author(s):  
Wei Cui ◽  
Mengying Wei ◽  
Weisi Xie ◽  
Jing Xing
Keyword(s):  
Small Firms ◽  
Corporate Tax ◽  
Tax Cuts

scholarly journals Measuring media liberalism or dirigisme degree by country

2021 ◽  
Vol 188 (3-4) ◽  
pp. 4-14
Author(s):  
Leyli Ali Allakhverdieva ◽  
Keyword(s):  
Information Services ◽  
Corporate Tax ◽  
Media Freedom ◽  
The Public ◽  
Radio Broadcasting ◽  
Level Of Economic Development ◽  
The Media ◽  
The Government ◽  
The Uk ◽  
Watching Tv

The author measures the degree of of the public regulation of the information services provision via media (media liberalism degree), namely via printed media, and television and radio broadcasting. The methodology of measurement of media liberalism degree (media freedom subindex) is part of the index of liberalism (or dirigisme in opposite) of information services, prepared according to Professor N. Muzaffarli’s assessment of the degree of the government intervention in the economy. In order to measure the media freedom subindex, the following indicators are used: the VAT index on printed publications, the VAT index on television and radio broadcasting, the index of license fee for watching TV, the VAT index of license fee for watching TV, the index of penalty for late VAT payment, the corporate tax index, the ratio of private and the state TV channels subindex. Measuring those indices in the studied group of countries made it possible to establish that: 1) Azerbaijan and Georgia are the most liberal countries with regard to the VAT index on printed publications, Bulgaria is the most dirigiste country; 2) the minimal VAT index on television and radio broadcasting is observed in Malta, the maximal - in Hungary; 3) in most countries the index of license fee for watching TV is lowest, with Austria having the highest indicator; 4) in Azerbaijan, the Russian Federation, Georgia and Armenia there is no concept of license fee for watching TV, respectively there is no related VAT; in the UK, Ireland, Malta, the Netherlands and Sweden this type of tax is not levied either; 5) the most liberal country in terms of the index of penalty for late VAT payment is Hungary, whereas Slovenia is the most dirigiste; 6) the most liberal country with regard to the corporate tax index is Hungary, while the most dirigiste is Malta; 7) in most countries the ratio of the private and state-owned TV channels subindex is equal to zero (there are no local public TV channels), with France being the most dirigiste country in terms of the subindex mentioned above. It can be noted that the most liberal media belong to Cyprus, the most dirigiste - to France. In most of the researched countries the media are more liberal than the relative center shows. It has been found that most countries with a higher level of economic development adhere to less dirigiste media policies, and vice versa. Also, there are countries that do not lend themselves to this pattern, for example, Ireland.

scholarly journals Corporate Tax Cuts for Small Firms: What Do Firms Do?

2021 ◽  
Author(s):  
Wei Cui ◽  
Mengying Wei ◽  
Weisi Xie ◽  
Jing Xing
Keyword(s):  
Small Firms ◽  
Corporate Tax ◽  
Tax Cuts

Brexit will pose dilemmas for UK constitution

2019 ◽  
Keyword(s):  
Foreign Policy ◽  
United Kingdom ◽  
Free Market ◽  
Corporate Tax ◽  
Content Type ◽  
The United Kingdom ◽  
Constitutional System ◽  
The Uk ◽  
The Eu

Subject Brexit and the UK constitution. Significance After Brexit, the United Kingdom will move from a protected constitutional system, established by EU treaties, to one dominated by the sovereignty of Parliament. Such an unprotected system is difficult to reconcile with the protection of rights and with devolution. Impacts There will likely be entrenched division over the prospect of a codified constitution and what it includes. The United Kingdom should remain in a close and strategic foreign-policy relationship with the EU. There will be pressure from free-market Conservative MPs to lower tariffs and deregulate personal and corporate tax to encourage business.

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