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The Business Tax Reform Agenda *
Author(s) -
Menezes Flavio M.
Publication year - 2012
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2012.00165.x
Subject(s) - corporate tax , tax reform , business , value added tax , tax avoidance , tax rate , direct tax , equity (law) , accounting , economics , public economics , monetary economics , political science , law
During the session on business taxation at the National Tax Forum in 2011, little consensus emerged between business representatives and union leaders on the reformations that should be made to the business taxation system. One proposal that greatly divided opinion was a reduction in the corporate tax rate. In this article, it is argued that changes in the treatment of tax losses and the introduction of a well‐designed allowance for corporate equity represent a better business tax reform strategy than cutting the corporate tax rate.