Economic responses to fiscal incentives of owners of small corporations: evidence from the Netherlands. *
This paper investigates fisscal incentives for owners of small corporations, Directeur Grootaandeel-houders (DGAs), inherent to the Dutch tax code and how DGAs react to them. We find evidence of inter and intra-temporal income shifting, and of bunching at the kink point. These behavioural responses correspond to an elasticity of corporate income with respect to the-net-of-tax rate of 0.072. By comparing estimates for different subsamples of the DGA population, it is shown that this elasticity is composed of both a real-economic component and an income shifting component, principally via invest... Mehr ...
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Dokumenttyp: | preprint |
Erscheinungsdatum: | 2018 |
Verlag/Hrsg.: |
HAL CCSD
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Schlagwörter: | Public economics / taxation / elasticity / bunching / [SHS]Humanities and Social Sciences / [SHS.ECO]Humanities and Social Sciences/Economics and Finance |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-27587524 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | https://shs.hal.science/halshs-04504190 |
This paper investigates fisscal incentives for owners of small corporations, Directeur Grootaandeel-houders (DGAs), inherent to the Dutch tax code and how DGAs react to them. We find evidence of inter and intra-temporal income shifting, and of bunching at the kink point. These behavioural responses correspond to an elasticity of corporate income with respect to the-net-of-tax rate of 0.072. By comparing estimates for different subsamples of the DGA population, it is shown that this elasticity is composed of both a real-economic component and an income shifting component, principally via investment deductions.