How much can corporate tax reduction contribute to economic recovery, employment and feedback of tax revenue?

摘要: Recently, discussion of corporate tax reduction is hot political issue in Japan. Especially, some researchers and politicians insist on the rate, following fact "Corporate paradox", which means that revenue per Gross Domestic Product (GDP) has a negative correlation with effective rate. However, quantitative effect unclear finance methods does not proceed. Therefore, we examine to employment, output total cost reduction. To analyze reduction, use Dynamic General Equilibrium (DGE) model shooting algorithm calculate large (i.e. 5% or 20% rate reduction). As result, long-run only prompts economic growth, but also increases revenue, when financed by lump-sum transfer. Because current right hand side Laffer curve. With respect magnitude absolute impact much larger than 5%. But relative multiplier reduction) little smaller short-run one. In short-run, since capital accumulation insufficient, households decrease consumption revenue.