Corporate Minimum Tax and the Elasticity of Taxable Income: Evidence from Administrative Tax RecordsIndian Rupee

• 成果类型: Article
• 署名作者: Bukovina, Jaroslav; Lichard, Tomas; Palguta, Jan; Zudel, Branislav
• 署名单位: Prague University of Economics & Business; Masaryk University; Masaryk University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20230108
• 发表日期: 2025
• 页码: 358-387
• 关键词: deadweight loss; taxation; rates

摘要

We examine business responses to a minimum tax (MT) that prescribed fixed floors on corporate tax liability while permitting MT credit carryforwards. Using 2010-2020 tax-return data on all Slovak corporations, we find that many companies immediately relocated from reporting zero taxable income toward bunching at the new floors. We infer the elasticity of taxable income (ETI) to be between 0.33 and 2.28 across value-added tax (VAT) and turnover categories, and quantify the marginal efficiency burden (MEB) of the corporation tax. Given limited extensive-margin responses, our evidence suggests the MT reduced the overall efficiency burden while raising additional tax revenue. (JEL D22, E62, H25, H32)