The importance of the political process on corporate tax policy
(2015) In Constitutional Political Economy 26(3). p.281-306- Abstract
- Few would argue that the difficulty in making legislative changes influences policy decisions and often results in less timely and responsive legislation. Despite this, economic research on corporate tax policy often excludes consideration of the political process. This study examines the impact of the political and economic factors on several measures of corporate tax rates and tax incentives offered across 19 developed countries. Our results indicate that while economic conditions influence the rate of tax set by governments, the political process of the federal government also has a significant impact on the economic stimulus given. The impact of the political process on the ability to enact legislation is significant after controlling... (More)
- Few would argue that the difficulty in making legislative changes influences policy decisions and often results in less timely and responsive legislation. Despite this, economic research on corporate tax policy often excludes consideration of the political process. This study examines the impact of the political and economic factors on several measures of corporate tax rates and tax incentives offered across 19 developed countries. Our results indicate that while economic conditions influence the rate of tax set by governments, the political process of the federal government also has a significant impact on the economic stimulus given. The impact of the political process on the ability to enact legislation is significant after controlling for economic factors indicating that in a global economy, it will become increasingly important for governments to find opportunities to work within their systems to enact legislation that attracts foreign direct investment and increases domestic growth. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/0f66b56a-4d56-4b4e-859c-e7e2e69da5da
- author
- Hansson, Åsa LU ; Porter, Susan and Perry Williams, Susan
- organization
- publishing date
- 2015
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Tax rates, Tax competition, Institutional constraints, Political fractionalization, H25, H73, K40
- in
- Constitutional Political Economy
- volume
- 26
- issue
- 3
- pages
- 281 - 306
- publisher
- Springer
- external identifiers
-
- scopus:84943358918
- ISSN
- 1043-4062
- DOI
- 10.1007/s10602-014-9185-8
- language
- English
- LU publication?
- yes
- id
- 0f66b56a-4d56-4b4e-859c-e7e2e69da5da
- date added to LUP
- 2023-05-24 13:36:37
- date last changed
- 2023-07-24 12:43:20
@article{0f66b56a-4d56-4b4e-859c-e7e2e69da5da,
abstract = {{Few would argue that the difficulty in making legislative changes influences policy decisions and often results in less timely and responsive legislation. Despite this, economic research on corporate tax policy often excludes consideration of the political process. This study examines the impact of the political and economic factors on several measures of corporate tax rates and tax incentives offered across 19 developed countries. Our results indicate that while economic conditions influence the rate of tax set by governments, the political process of the federal government also has a significant impact on the economic stimulus given. The impact of the political process on the ability to enact legislation is significant after controlling for economic factors indicating that in a global economy, it will become increasingly important for governments to find opportunities to work within their systems to enact legislation that attracts foreign direct investment and increases domestic growth.}},
author = {{Hansson, Åsa and Porter, Susan and Perry Williams, Susan}},
issn = {{1043-4062}},
keywords = {{Tax rates; Tax competition; Institutional constraints; Political fractionalization; H25; H73; K40}},
language = {{eng}},
number = {{3}},
pages = {{281--306}},
publisher = {{Springer}},
series = {{Constitutional Political Economy}},
title = {{The importance of the political process on corporate tax policy}},
url = {{http://dx.doi.org/10.1007/s10602-014-9185-8}},
doi = {{10.1007/s10602-014-9185-8}},
volume = {{26}},
year = {{2015}},
}