Macroeconomic effects of zero corporate income tax on retained earnings

Article OPEN
Jaan Masso; Jaanika Meriküll; (2011)
  • Journal: Baltic Journal of Economics,volume 11,issue 2 December,pages81-99
  • Subject: corporate income tax, retained earnings, endogenous corporate finance, catching-up countries
    • jel: jel:O16 | jel:E21 | jel:P35 | jel:H25
    mesheuropmc: education | health care economics and organizations

International tax competition had led to a lowering of corporate tax rates worldwide. Estonia was the first country to reduce the tax rate on retained earnings to zero, while distributed profits remained taxed at the pre-reform level. This paper seeks to analyse the eff... View more
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