Publication: Reforming Business Taxes : What is the Effect on Private Sector Development?
Date
2011-12
ISSN
Published
2011-12
Author(s)
Bruhn, Miriam
Abstract
Tax rates and the administrative costs
of tax compliance are key concerns of business. Studies
within and across countries suggest that lowering corporate
tax rates can increase investment, reduce tax evasion by
formal firms, promote the creation of formal firms, and
ultimately raise sales and Gross Domestic Product (GDP).
These benefits, however, need to be balanced against other
objectives of the tax regime. Although less is known about
the effects of reducing compliance costs, evidence suggests
that this too can lead to more formal firms and higher sales.
Citation
“Bruhn, Miriam. 2011. Reforming Business Taxes : What is the Effect on Private Sector Development?. Viewpoint: Public Policy for the Private Sector; Note No. 330. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/6e906f31-9f04-5424-8869-e78f7cb6625a License: CC BY 3.0 IGO.”
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