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Do corporate tax cuts boost economic growth?

  • Paper
  • 2022
  • #Tax #Business #EconomicGrowth
Sebastian Gechert
@SGechert
(Author)
Philipp Heimberger
@heimbergecon
(Author)
www.sciencedirect.com
Read on www.sciencedirect.com
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1 Mention
The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growt... Show More

The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel data set with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.

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Noah Smith @NoahSmith ยท Jul 25, 2022
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Here, here's an extremely good meta-analysis on corporate income tax cuts and economic growth that just came out. It shows that corporate tax cuts have been ineffective.
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