The effects of corporate taxes on small firms q

• 成果类型: Article
• 署名作者: Harju, Jarkko; Koivisto, Aliisa; Matikka, Tuomas
• 署名单位: Tampere University; VATT Institute for Economic Research
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2022.104704
• 发表日期: 2022
• 关键词: G38; H25; corporate taxation; investments; Business activity; small firms

摘要

We study the impact of corporate taxes on firm-level investments and business activity by exploiting a 6 percentage-point reduction in the corporate tax rate in 2012-2014 in Finland. We use detailed administrative data and a difference-in-differences method comparing small corporations (tax rate cuts) to similar partnerships (no change in taxes). We find no significant average investment responses but do observe an average increase in annual sales (1.6%) and variable costs (2%) when comparing years before (2008-2011) and after (2014-2016) the tax rate cuts. These effects are driven by more cash-constrained firms and firms where the main owner actively works in the firm. (c) 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).