Clausing [2007] found that corporate tax revenues rise and then fall with increases in the corporate tax

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Clausing [2007] found that corporate tax revenues rise and then fall with increases in the corporate tax rate. She also found that “smaller, more open economies have lower revenue-maximizing tax rates than do larger or more closed economies.” Explain what might account for this result.
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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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