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Impact of tax rates on tax revenue for the state – modeling of Laffer curve
Šmejkal, Martin ; Soukup, Jindřich (advisor) ; Makovský, Petr (referee)
There are many recent studies which try to find the evidence of the Laffer curve in national economies or aggregated OECD data. In this Master Thesis I focus on testing of the primary linear relation of the corporate income tax rate and the corporate tax base, that I call herein adjusted Laffer curve. The adjusted Laffer curve is then transferred through the simplification into the ordinary Laffer curve. The linear regression analysis is performed on the OECD data of 34 countries across years 2000 to 2014. Firstly, the countries are split by the national tax system criteria, such as tax quota, tax revenue allocation or tax structure of revenues that I consider essential for further analysis. Based on the results of linear regression I can only find Laffer curve in set of countries that aim to collect tax revenues mainly from direct taxes. However, there are also other major findings, such as the fact that negative relation of the corporate income tax rate and the corporate tax base, can be found in countries with the higher tax quota, while not in those with the lower tax quota.
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Corporate tax rates: A new area of international cooperation?
Hrušč, Erik ; Parízek, Michal (advisor) ; Kučerová, Irah (referee)
This thesis analyses the potential for international cooperation in the issue of corporate tax rates. Using newly created dataset we study the relationship between the foreign direct investments and corporate tax rates in order to confirm that countries benefit from competing in setting their tax rates. Lowering one's corporate tax rate pays off in increased FDI. Furthermore, under the assumption that competitive behavior is individually rational, we analyze through the use of coherent country clusters the extent of competition within selected clusters, as compared to the situation on the global level. We find that the degree of competitive behavior is lower within coherent block of countries than globally. Thus, there seems to be less mutually harmful competition within coherent clusters of countries, mainly in EU 15, OECD and ASEAN, than on the global level.
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