Progressive Taxes and Firm Births

Details

Ressource 1Download: serval:BIB_ADE341152610.P001 (1421.04 [Ko])
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Version: author
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It was possible to publish this article open access thanks to a Swiss National Licence with the publisher.
Serval ID
serval:BIB_ADE341152610
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Progressive Taxes and Firm Births
Journal
International Tax and Public Finance
Author(s)
Bacher H. U., Brülhart M.
ISSN
0927-5940
Publication state
Published
Issued date
02/2013
Peer-reviewed
Oui
Volume
20
Number
1
Pages
129-168
Language
english
Abstract
Tax reform proposals in the spirit of the "flat tax" model typically aim to reduce three parameters: the average tax burden, the progressivity of the tax schedule, and the complexity of the tax code. We explore the implications of changes in these three parameters for entrepreneurial activity, measured by counts of firm births. The Swiss fiscal system offers sufficient intra-national variation in tax codes to allow us to estimate such effects with considerable precision. We find that high average taxes and complicated tax codes depress firm birth rates, while tax progressivity per se promotes firm births. The latter result supports the existence of an insurance effect from progressive corporate income taxes for risk averse entrepreneurs. However, implied elasticities with respect to the level and complexity of corporate taxes are an order of magnitude larger than elasticities with respect to the progressivity of tax schedules.
Keywords
Progressive taxation, Entrepreneurship, Risk taking, Firm location, Count models
Web of science
Open Access
Yes
Create date
19/02/2012 20:34
Last modification date
01/10/2019 7:19
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