Bilicka, Katarzyna

The effect of loss-offset provisions on the asymmetric behavior of corporate tax revenues in the business cycles / Katarzyna Bilicka .-- , 2019


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Resumen.

Bibliografía.

This paper estimates the response of corporate tax revenues to the business cycle fluctuations and calculates a heterogeneous asymmetry in the tax revenue responses between booms and recessions using a new index of loss-offset generosity provisions. I find strong short-run contemporaneous impact of business cycles on corporate tax revenues and a persistent asymmetric response of corporate tax revenues to booms and recession. Loss-offset generosity provisions enhance this asymmetry. Countries with more generous loss-offset provisions experience much more volatile response of corporate tax revenues to business cycles during recessions, magnifying the asymmetry of the cyclicality.


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National Tax Journal 0028-0283 v. 72, n. 1, March 2019, p. 45-78

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