Corporate Taxation for the Future: Competitive, Simple and Predictable : in Tax Systems, Less is Often More!.
- ISBN-10
- 9283045572
- ISBN-13
- 9789283045571
- Language
- English
- Published
- 2019
Description
Taxation in the EU must encourage domestic and cross-border business activities, job creation, investments, entrepreneurship and economic growth. - Taxation rules need to be clear and simple in order to avoid divergent interpretations and, as a result, costly disputes and double taxation. - Open, transparent tax competition between EU countries is crucial for further economic growth. - Corporate taxes generally create numerous and severe economic distortions and are to a large extent shifted to workers, consumers and suppliers. - Corporate income tax should be based on profit and not on revenue. In general, the corporate tax rate should be low and the base should be broad. - Lowering the corporate tax rate results in more investments and more taxable revenue. Economic data show that lowering the tax rate is often self-financing because of the resulting larger tax base. More investment opportunities become economically viable when the tax rate is reduced and are therefore more likely to be taken up. - Corporate tax revenue has been a stable contributor to overall tax revenue for the last 40 years – around 2.5% of GDP. - Corporations pay many other taxes, environmental levies, taxes on inputs such as energy, taxes on transportation, property taxes etc. In addition, companies act as an unpaid tax collector for governments.
