The Influence of Corporate Taxation on Economic Growth

The Failure of Tax Quota

Bibliographic Data

ID6109236
AuthorsIgor Kotlán (0000-0002-6121-3216, University of Ostrava), Zuzana Machová (0000-0002-3448-4600, University of Ostrava)
Year2012
Volume60
Issue6
Pages743-763
Publication date2012-12-01
Open AccessYes
TypeARTICLE
VenuePolitická ekonomie (JOURNAL)
Journal identifiersISSN: 0032-3233 • E-ISSN: 2336-8225
PublisherPrague University of Economics and Business (PUBLISHER • CZ)
DOI10.18267/j.polek.875
OpenAlexW2317037435
LanguageEN
Citations received3
References cited37

The aim of this paper is to evaluate the impact of taxation on long-term economic growth with special emphasis on corporate taxation using alternative indicator of tax burden which is called World Tax Index (WTI). The WTI was constructed by authors using hard data as well as soft data expressing qualified expert opinion gained from a questionnaire survey conducted among tax specialist from OECD countries. It is a multi-criteria index consisting of several sub-indices that deal with different groups of taxes, which are basically consistent with the classification according to the OECD. All the parts are used in further regression analysis to approximate the tax burden in growth model. As an alternative, also the tax quota is used, being the most applied indicator of tax burden. Results show that tax quota is not suitable for tax burden approximation, especially in case of corporate taxes or VAT. Corporate tax burden negatively influence long-term economic growth, as suggested by economic theory

Corporate Tax · Double taxation · Economics · Index (typography) · Indirect tax · Macroeconomics · Public economics · Tax avoidance · Tax credit · Tax reform · Value-added tax · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Taxation and Compliance Studies

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