2012年-IMF国际货币组织全球_Globalization_and_Corporate_Taxation_50页_2mb

Summary of "Globalization and Corporate Taxation"

Core Content

This working paper investigates the relationship between globalization—particularly financial and trade integration—and corporate tax rates across advanced and developing economies over a five-decade period. It explores how international competition and strategic behavior influence corporate taxation policies and tax revenues.

Main Findings

• No general negative relationship between financial globalization and corporate tax rates: While some studies suggest a "race to the bottom," the paper finds that financial globalization does not uniformly lead to lower corporate tax rates. In fact, for some OECD and non-OECD groups, financial globalization is associated with an increase in corporate tax rates and revenues.

• Stackelberg leadership by the U.S.: The U.S. is seen as a leader in corporate tax policy, with deviations from its tax rates not being sustained over the long term. U.S. tax cuts under financial openness conditions are likely to encourage similar cuts in other countries, while U.S. tax increases may reduce the pressure for such cuts.

• Trade integration inversely correlates with tax rates: Countries with higher levels of trade integration tend to have lower corporate tax rates. This suggests that trade openness may influence the strategic behavior of governments in setting tax rates.

• Global sentiment and ideology influence tax rates: Changes in global attitudes toward markets and private enterprise have had a notable effect on corporate tax rates. This is particularly evident in the shift from high to lower tax rates in many countries over the past three decades.

• Domestic political economy factors matter: In closed economies, particularly emerging markets, higher capital concentration is associated with lower corporate tax rates. This indicates that domestic political structures and preferences play a key role in shaping tax policy.

• Corporate tax revenues have increased despite falling rates: Even though corporate tax rates have declined globally, revenues have not necessarily followed. This is due to broader tax bases, increased profitability, and shifts in the tax system from personal to corporate taxes.

• No "race to the bottom" in capital taxation: The paper argues that fiscal rules and social equity norms can counteract the downward pressure from tax competition. These factors help maintain higher tax rates and revenues, even in the face of globalization.

Key Data and Methodology

• The analysis uses a unique dataset covering corporate tax rates and revenues for advanced and developing economies over 50 years.
• Panel data estimation is employed, allowing for country-specific and time-specific variations.
• The paper considers both financial globalization (FG) and trade integration as key determinants of corporate tax policy.
• It also incorporates political economy variables, such as the number of veto players and the structure of political institutions, to assess their impact on tax rates.

Policy Implications

• The findings have important implications for tax policy in the context of the global financial crisis, where many advanced economies are facing large fiscal deficits and public debt.
• The paper highlights the need for a nuanced understanding of how globalization interacts with domestic political factors to shape corporate taxation.
• The evidence suggests that tax policy decisions are influenced by a complex interplay of international competition, strategic behavior, and domestic political considerations.

Conclusion

The paper concludes that while globalization may exert downward pressure on corporate tax rates, the relationship is not straightforward. It emphasizes the importance of strategic behavior, particularly the leadership role of the U.S., and the impact of domestic political economy factors. The results also suggest that tax revenues can increase even as tax rates fall, due to broader tax bases and changes in the economic structure. The findings are robust across different country groupings and time periods, indicating a multifaceted and context-dependent relationship between globalization and corporate taxation.

Tables and Figures

• Table 1a and 1b: Factor analysis of regressors and regressand.
• Table 2: Determinants of corporate tax rates across full sample, OECD, and non-OECD countries.
• Table 3 and 4: Determinants of corporate tax rates for OECD, emerging, and developing economies.
• Table 5: Corporate taxation, capital share, and countries' net asset position.
• Figure 1: Central government corporate tax rates by region.
• Figure 2: Corporate income tax rate.
• Figure 3: Corporate tax revenue as a percentage of GDP.
• Figure 4-10: Various five-year averages and global averages of corporate tax rates and revenues.

References and Appendices

• The paper cites a range of studies, including those by Hines, Summers, Devereux, and others, to support its analysis.
• Appendices include tables on corporate tax revenues as a percentage of GDP and country classifications, providing additional context for the empirical analysis.