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The development of corporate tax structures in the European Union from 1998 to 2015 - Qualitative and quantitative analysis

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  • Bräutigam, Rainer
  • Spengel, Christoph
  • Stutzenberger, Kathrin

Abstract

Ongoing tax reform processes, competitive pressures and the consequences of the financial and sovereign debt crisis have considerably shaped the tax systems of the Member States of the European Union in the last two decades. Our paper combines a qualitative and quantitative analysis of the development of European tax structures based on a unique and comprehensive dataset for the EU-25 Member States between 1998 and 2015. Especially among the EU-15 Member States, we still find evidence for the often-cited trend of tax rate cut cum tax base broadening. In this context, we identify interest deduction limitation rules and loss provisions as main drivers of tax base broadening. Furthermore, the quantitative analysis of effective tax burden scenarios shows that Member States seem to additionally rely on an increased taxation of dividends to balance possible revenue losses associated with reduced corporate income tax rates.

Suggested Citation

  • Bräutigam, Rainer & Spengel, Christoph & Stutzenberger, Kathrin, 2017. "The development of corporate tax structures in the European Union from 1998 to 2015 - Qualitative and quantitative analysis," ZEW Discussion Papers 17-034, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:17034
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    Cited by:

    1. Fischer, Leonie & Heckemeyer, Jost H. & Spengel, Christoph & Steinbrenner, Daniela, 2021. "Tax policies in a transition to a knowledge-based economy: The effective tax burden of companies and highly skilled labour," ZEW Discussion Papers 21-096, ZEW - Leibniz Centre for European Economic Research.
    2. Nicodeme Gaetan & Caiumi Antonella & Majewski Ina, 2018. "What Happened to CIT Collection? Solving the Rates-Revenues Puzzle," Taxation Papers 74, Directorate General Taxation and Customs Union, European Commission.
    3. Spengel, Christoph & Fischer, Leonie & Stutzenberger, Kathrin, 2020. "Breaking borders? The European Court of Justice and internal market," ZEW Discussion Papers 20-059, ZEW - Leibniz Centre for European Economic Research.
    4. Christoph Spengel & Marcel Olbert & Kathrin Stutzenberger & Thomas Straubhaar & Johannes Becker & Joachim Englisch & Joachim Lang & Patrick Kompolsek & Michael Riedle & Martin Ruf, 2018. "US-Steuerreform: Chancen und Risiken: Wer gewinnt – wer verliert?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(04), pages 03-19, February.
    5. Bührle, Anna Theresa & Spengel, Christoph, 2019. "Tax law and the transfer of start-up losses: A European overview and categorization," ZEW Discussion Papers 19-037, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Tax Policy; Corporate Taxation; European Union;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

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