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Open access
Date
2016-11Type
- Working Paper
ETH Bibliography
yes
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Abstract
In response to mounting international pressure to reform the ring-fenced elements profits tax system, the Swiss government has put forward a comprehensive tax reform package. The proposal comprises the introduction of a license box, a substantial reduction in cantonal profit tax rates, and an allowance for excess corporate equity. We apply a computable general equilibrium model to quantify the economic effects of this reform. Our results reveal that the license box, combined with the reduction in the cantonal profit taxes, limits the outflow of the tax base of those companies that benefit from the current preferential tax treatment. The reduction in cantonal profit taxes and the fact that regularly taxed companies additionally benefit from the license box render the reform package costly, such that tax revenues might well decline after the reform. Show more
Permanent link
https://doi.org/10.3929/ethz-a-010746460Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichSubject
FISKALPOLITIK; Tax Competition; SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; TAX REFORMS (FINANCE); Corporate Tax Reform; Mobile Firm Prots; Dynamic General Equilibrium Model; FISCAL POLICY; License Box; STEUERREFORMEN (FINANZEN)Organisational unit
03988 - Köthenbürger, Marko / Köthenbürger, Marko
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
06332 - KOF FB Öffentliche Finanzen / KOF Public Economics
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ETH Bibliography
yes
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