Modelling Corporation Tax Revenue

Modelling Corporation Tax Revenue examines the revenue growth properties of corporate income taxes and how firms respond to changes in corporation tax. It provides a companion volume to the authors' Modelling Tax Revenue Growth, which explores the revenue growth and behavioural response properties of income and consumption taxes. John Creedy and Norman Gemmell examine the corporation tax structure and the implications for revenue elasticity both for individual corporations and for all firms combined. The authors highlight how asymmetries in the treatment of positive and negative profits in the tax structure affect firms' revenues and behaviours, and demonstrate that the examination of corporation tax revenue requires a detailed treatment of dynamic aspects. Within the book, a dynamic microsimulation model is constructed and used to examine profits and taxes over hypothetical business cycles, concentrating on the revenue elasticity and profit shifting responses to tax changes. This comprehensive yet concise book will appeal to researchers and graduate students in public finance, public economics and taxation, as well as economists in governmental departments and international organisations.

ISBN 1848447655   DEWEY edition DC22 ISBN13 9781848447653 (What's this?)   Pages 288 Publisher Edward Elgar Publishing Ltd   Published in Cheltenham Imprint Edward Elgar Publishing Ltd   Height (mm) 234 Format Hardback   Width (mm) 156 Publication date 30 Sep 2010   Academic level Postgraduate DEWEY 336.243

		List of Figures
		List of Tables
		Acknowledgements
I		Introduction
1		Introduction and Outline		3
1.1		Corporate Tax Revenue		4
1.2		Tax Buoyancy and Fiscal Drag		13
1.2.1		Corporation Tax Buoyancy in the UK		14
1.2.2		Fiscal Drag and Revenue Elasticity		18
1.3		Outline of the Book		20
1.4		Conclusions		22
II		Corporate Profits and Tax Revenue
2		The Revenue Elasticity		27
2.1		Revenue Elasticity for Individual Companies		27
2.2		Elasticity with Endogenous Deductions		30
2.2.1		Group Relief		31
2.2.2		Consolidated Accounting		33
2.2.3		Cyclical Effects		33
2.3		The Tax Schedule and Revenue Elasticities		34
2.4		The Aggregate Revenue Elasticity		39
2.4.1		The Revenue Elasticity over the Cycle		40
2.5		Conclusions		45
3		Tax Loss Asymmetries		47
3.1		Taxes and Loss Asymmetries		51
3.1.1		Losses and Deductions		51
3.1.2		Numerical Illustrations		56
3.2		Responses to Tax Changes		60
3.2.1		Profit-Shifting and the Tax Rate		60
		More...

'Fiscal crises around the world imply that revenue forecasting is ever more important, while globalization implies that estimating corporate tax revenues is ever more difficult. This book could thus not be more timely, as Creedy and Gemmell provide an expert analysis of both the technical issues and practical details that must be addressed in modelling corporation tax revenues. It will be invaluable to anyone involved in revenue forecasting - or anyone who wants to know what is involved in revenue forecasting.' - George R. Zodrow, Oxford University, UK 'Corporate taxes are an important but volatile source of revenue in leading economies like the UK. Understanding the factors that influence fluctuations in corporate tax revenues is important not only for projecting revenues, but also for designing and reforming tax systems to promote economic efficiency and keep up with the evolving nature of the corporate sector. This comprehensive analysis and modeling of corporate behavior and taxation is an important contribution toward gaining such understanding.' - Alan Auerbach, University of California, US

 Be the first to write a customer review