The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records

• 成果类型: Article
• 署名作者: Devereux, Michael P.; Liu, Li; Loretz, Simon
• 署名单位: University of Oxford; University of Bayreuth
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.6.2.19
• 发表日期: 2014
• 页码: 19-53
• 关键词: deadweight loss; organizational form; responses; CHOICE; POLICY; rates

摘要

We estimate the elasticity of corporate taxable income with respect to the statutory corporation tax rate using the population of UK corporation tax returns. We analyze bunching in the distribution of taxable income at kinks in the marginal rate schedule. We decompose this elasticity into an elasticity of total income with respect to the corporation tax rate, and an elasticity of the share of income taken as profit with respect to the difference between the personal and corporate tax rates. This implies a marginal deadweight cost at the 10,000 pound kink of around 29 percent of tax revenue.