Mooij, Ruud de; Devereux, Michael P. - General Directorate Taxation and Custom Union, European … - 2009
This paper explores the economic implications of an allowance for corporate equity (ACE), a comprehensive business income tax (CBIT) and a combination of the two in the EU. We illustrate the key trade-offs in designing ACE and CBIT in the presence of tax distortions at various decision margins...