Wolfgang Eggert, Andreas Haufler

Company-Tax Coordination cum Tax-Rate Competition in the European Union

Section: Fiscal Policy in Action
FinanzArchiv (FA)

Volume 62 () / Issue 4, pp. 579-601 (23)

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This paper reviews the recent theoretical literature that analyzes the European Union's policy to eliminate preferential corporate-tax regimes and the proposal to introduce a consolidated EU tax base with formula apportionment for the taxation of multinational firms. Since neither proposal includes a harmonization of corporate-tax rates, a core issue is how tax competition between member states will be affected by these partial coordination measures. The conclusions from our review are supportive of the EU's ban on preferential tax regimes, but the economic incentive effects of a switch to formula apportionment are found to be ambiguous.

Wolfgang Eggert Geboren 1966; 1999 Promotion an der Universität Konstanz; zur Zeit Forschungsaufenthalt als Post Doc an der Universität Kopenhagen, Institute of Economics.

Andreas Haufler No current data available.