2023年4月
Tax Evasion and Optimal Corporate Income Tax Rates in a Growing Economy
Macroeconomic Dynamics
- ,
- ,
- 巻
- 27
- 号
- 3
- 開始ページ
- 743
- 終了ページ
- 769
- 記述言語
- 英語
- 掲載種別
- 研究論文(学術雑誌)
- DOI
- 10.1017/S1365100521000638
- 出版者・発行元
- Cambridge University Press
We explore how tax evasion by firms affects the growth- and welfare-maximizing rates of corporate income tax (CIT) in an endogenous growth model with productive public service. We show that the negative effect of CIT on growth is mitigated in the presence of tax evasion. This increases the benefit of raising the CIT rate for public service provision. Thus, in contrast to Barro (1990), the optimal tax rate is higher than the output elasticity of public service. Through numerical exercises, we demonstrate that the role of tax evasion by firms is quantitatively significant.
- リンク情報
- ID情報
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- DOI : 10.1017/S1365100521000638