10.17889/E112062
Loretz, Simon
Liu, Li
Devereux, Michael P.
Replication data for: The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records
ICPSR Inter-university Consortium for Political and Social Research
2014
10.1257/pol.6.2.19
10.1257/pol.6.2.19
V0
We estimate the elasticity of corporate taxable income with respect to
the statutory corporation tax rate using the population of UK corporation
tax returns. We analyze bunching in the distribution of taxable
income at kinks in the marginal rate schedule. We decompose this
elasticity into an elasticity of total income with respect to the corporation
tax rate, and an elasticity of the share of income taken as profit
with respect to the difference between the personal and corporate tax
rates. This implies a marginal deadweight cost at the £10,000 kink of
around 29 percent of tax revenue.