In Europe, the declining corporate tax rates are combined with rising tax-GDP ratios. This one paper examines the extent to which income shift from the personal to the corporate tax base canexplain these divergent developments. We operate a panel of European data on the legal form ofCompany to shift revenue through commissioning. The results suggest that the effect issignificant and large. It implies that the turnover effects of lower corporation tax – possiblecaused by tax competition – will partly result in lower personal tax revenues instead oflower business tax revenues. Simulations suggest that between 12% and 21% of companiesTax revenue can be attributed to income shift. Revenue shift shows that the business tax GDP ratio by about 0.25% points since the early 1990s.
In this project, we analyze long-term scenarios for European Corporate Tax Policy and Construction, as well as the impact of terms on the global LNG market share market.