Corporate tax minimization and the effectiveness of investment tax incentives
Author
dc.contributor.author
Dauchy, Estelle
Author
dc.contributor.author
Martínez Alvear, Claudia
Admission date
dc.date.accessioned
2018-07-17T20:13:26Z
Available date
dc.date.available
2018-07-17T20:13:26Z
Publication date
dc.date.issued
2008
Cita de ítem
dc.identifier.citation
State Tax Notes Vol. 47, No. 13, Marzo, 2008
es_ES
Identifier
dc.identifier.uri
https://repositorio.uchile.cl/handle/2250/149956
Abstract
dc.description.abstract
Clarifying the relationship between corporate tax minimization and the incentive to
invest is particularly important because of the size of corporate tax minimization or
avoidance and the recurrent use of tax incentives as attempts to spur business
investment. In particular, successful tax avoidance may undermine the effectiveness of
tax incentives designed to encourage investment. In this paper, we empirically estimate
the effect of an investment tax incentive known as the bonus depreciation that was
passed in 2002, and extended in 2003 using firm level data. We find a small effect of
bonus depreciation on investment and evidence that tax minimization opportunities
have mitigated its effectiveness.