Intergovernmental Fiscal Transfers and Tax Efforts: Evidence from Japan

Content Provider	Semantic Scholar
Author	Miyazaki, Takeshi
Copyright Year	2016
Abstract	The present study examines the incentiv¬e effects of fiscal equalization transfers on local corporate tax rates from theoretical and empirical perspectives. The study focuses on additional corporate tax on capital, which is exempt from calculations of equalization grants. A theoretical investigation reveals that a rise in equalization rate increases additional capital tax rates. The theoretical prediction is empirically examined using panel data of Japanese municipalities for 1990–2000. It is found that a higher equalization rate in fiscal equalizing transfers gives municipalities an incentive to raise corporate tax rates exempt from the transfer scheme.
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://mpra.ub.uni-muenchen.de/74337/1/MPRA_paper_74337.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article