Downward Revision of Investment Decisions after Corporate Tax Hikes

This paper estimates the causal effect of corporate tax hikes on firm investment based on more than 1,400 local tax changes. By observing planned and realized investment volumes in a representative sample of German manufacturing firms, we can study how tax hikes induce firms to revise their investment decisions. On average, the share of firms that invest less than previously planned increases by three percentage points after a tax hike. This effect is twice as large during recessions

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Year of publication:	[2023]
Authors:	Link, Sebastian ; Menkhoff, Manuel ; Peichl, Andreas ; Schüle, Paul
Publisher:	[S.l.] : SSRN
Subject:	Investitionsentscheidung \| Investment decision \| Unternehmensbesteuerung \| Corporate taxation \| Körperschaftsteuer \| Corporate income tax

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Extent:	1 Online-Ressource (73 p)
Series:	IZA Discussion Paper ; No. 16056
Type of publication:	Book / Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.4416769 [DOI]
Classification:	G11 - Portfolio Choice ; H25 - Business Taxes and Subsidies ; H32 - Firm ; H71 - State and Local Taxation, Subsidies, and Revenue ; O16 - Financial Markets; Saving and Capital Investment
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014351266