The Effects of International and European Corporate Tax Reforms on Efficiency and Inequality

The objective of the study is to describe the potential effects of some possible corporate tax reforms on economic efficiency, inequality and tax competition. The study will offer an in-depth descriptive overview of the channels and possible interactions between them, where relevant. Furthermore, it will explore the main components of potential reforms, each within the Single Market and at international level: a reallocation of taxing rights across jurisdictions, the implementation of a minimum effective tax rate, and a harmonisation of tax bases. When quantification is possible, the study will also provide the methodology to estimate the magnitudes of the various effects of the reforms on economic efficiency, inequality and tax competition, together with preliminary estimates of the effects. Lastly, the study will didactically describe in detail whether and how the European Commission's CORTAX model might be further developed to include the potential effects discussed. In case the effects are not currently included in CORTAX, the study will conductible explain how to integrate them into the model and provide a detailed description of the methodology to integrate the effects, in the form of reduced-form equations.