This paper studies how firms respond to differential, size-based tax rates using administrative tax data in Lithuania. Exploiting a notch in the tax schedule faced by corporations, it documents strong behavioral responses to tax incentives— revenue elasticity is estimated at 0.35 and cost elasticity at −1.3, implying a large total profit elasticity of 7.4. It then leverages the panel structure of the data to provide insights on the dynamic effects...
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详细
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2023/06/26
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政策研究报告
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WPS10500
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1
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2023/06/26
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Disclosed
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Corporate Responses to Size-Based Tax Rates in Lithuania