Business, Management and Accounting
7 years ago

Lowering corporate tax rates may attract investment but hinder economic growth.

Economic Affairs
Lowering the Marginal Corporate Tax Rate: Why the Debate?
Nikolay Anguelov

Paper Summary

Lowering corporate tax rates can attract more foreign investors but may not necessarily lead to overall economic growth. This was found in a study of 60 countries from 1999 to 2009, which showed that reduced taxes can increase foreign investment but decrease annual GDP growth. The main takeaway is that while tax competition can bring in investments, it may not boost the economy as a whole.

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