|
|
Digital
Library of the European Council for Modelling and Simulation |
|
Title: |
Taxation
And Corporate Performance: Less Is More |
|
Authors: |
Peter Juhasz,
Kata Varadi |
|
Published in:
|
(2016).ECMS 2016 Proceedings edited
by: Thorsen Claus, Frank Herrmann, Michael Manitz, Oliver Rose, European Council for Modeling and
Simulation. doi:10.7148/2016 ISBN:
978-0-9932440-2-5 30th
European Conference on Modelling and Simulation, Regensburg Germany, May 31st
– June 3rd, 2016 |
|
Citation
format: |
Peter Juhasz,
Kata Varadi (2016). Taxation
And Corporate Performance: Less Is More, ECMS 2016 Proceedings edited by:
Thorsten Claus, Frank Herrmann, Michael Manitz,
Oliver Rose European Council for Modeling and
Simulation. doi:10.7148/2016-0172 |
|
DOI: |
http://dx.doi.org/10.7148/2016-0172 |
|
Abstract: |
This paper is focusing on how
different forms of tax effect the performance of
individual companies, the whole economy, and the total tax income of the government.
We test fixed, sales-linked and profit taxes under changing circumstances:
first we will examine the effect of taxes when the growth rate and the
uncertainty is zero, then we will take growth opportunities into account,
finally we add uncertainty, too. The main result of this
paper are the following. (1) Not only total tax amount but also the
form of tax matters. Different types of taxes will influence the business
activity in various ways. (2) The extremes are not the best choice: there
could be one optimum level of taxation. (3) Increase of nominally fixed taxes
near the maximal sustainable level should be lower than the expected growth
of the economy; and (4) too high tax burden is more harmful in less stable
countries. |
|
Full
text: |
|
