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Tax competition: strategic tax rate lowering and expected impact of US 2017 reform on other countries
Hamráková, Júlia ; Janský, Petr (advisor) ; Hájek, Jan (referee)
This thesis deals with an international corporate income tax competition with focus on corporate income tax rate spillovers from the past tax cuts in the USA. The main research question we seek the answer to is: "Do countries follow the USA in the corporate income tax rate setting?" Empirical models were evalu- ated using GMM model for the panel data. Our results confirm the existence of the tax rate spillovers, however, do not prove solid leadership of the USA in the tax rate setting. We found that countries which are geographically closer to the USA and OECD jurisdictions are more likely to follow the USA in the tax rate policy changes. Our research is unique extension to the previous literature dealing with this topic as it uses not only the weighted world corporate income tax rate in the model, but also the corporate income tax rate of the USA and therefore allows us to see the effect of the past tax cuts in the USA for other countries. The results of our work can serve as a lead for examining the impact of the US tax rate cut in 2017. JEL Classification F12, F21, F23, H25 Keywords tax competition, corporate income tax rate, tax spillovers, profit shifting Title Tax competition: strategic tax rate lowering and expected impact of US 2017 reform on other countries Author's e-mail...
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