From 1993 to 2016, the corporate tax schedule remained relatively stable. Starting from 2017, many changes were implemented by French President Hollande and then President Macron. First, smaller rates were introduced for specific small firms, in order to enhance their growth. Those smaller rates were then phased-in to other types of firms. This setup enables the analysis of the effect of such a decrease in the corporate tax rate on specific subsets of firms. This project aims at studying the effect of a decrease in the rate on the decision variables of firms but also their strategic responses. Indeed, since the smaller rates are determined by turn-over and profit conditions, did firms strategically change their processes to meet those conditions? If so, how did it change the time path of profit, turn-over and other characteristics' distributions?
Corporate taxation and strategic responses
Data provided through CASD (24)
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