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PRODID:-//Columba Systems Ltd//NONSGML CPNG/SpringViewer/ICal Output/3.3-
 M3//EN
VERSION:2.0
CALSCALE:GREGORIAN
METHOD:PUBLISH
BEGIN:VEVENT
DTSTAMP:20261009T091816Z
DTSTART:20261014T120000Z
DTEND:20261014T125000Z
SUMMARY:Brownbag Seminar: Lucía Contreas
UID:{http://www.columbasystems.com/customers/uom/gpp/eventid/}vbg-mv0r63m
 m-r8p5yt
DESCRIPTION:Title: Less Simple\, Less Distortionary? Evidence from Costa 
 Rica’s Corporate Tax Reform\n\nAuthors: Lucía Contreas and Jonathan Gari
 ta\n\nAbstract: This paper studies how firms respond to a less distortio
 nary but less simple tax schedule in a developing economy. We do so in t
 he context of Costa Rica’s 2020 corporate income tax reform\, which repl
 aced a simple but highly distortionary notched schedule with a less simp
 le and more efficient kinked one. Notched schedules are relatively easy 
 to comply with and administer\, which may explain why they are common in
  these settings\, but their design makes liability jump at cutoffs\, cre
 ating strong incentives to stay below them. Kinked schedules weaken thes
 e incentives\, but they are less simple\, which can lead taxpayers to mi
 sperceive the relevant incentives. Using 2016–2024 administrative tax re
 turns and a difference-in-differences design that exploits rich variatio
 n in marginal and average tax rates across firms\, we find no such mispe
 rception. Reported profits responded to the relevant changes in marginal
  tax rates\, but not to changes in average rates\, unlike what has been 
 documented for individuals. In contrast to the asymmetries documented fo
 r other taxes such as VAT\, reported profits were equally responsive to 
 corporate tax cuts and increases\, with elasticities of about 3.1–3.2\, 
 which can inform future tax policy. Overall\, given these responses\, we
  argue that less simple\, and more economically efficient tax designs\, 
  should be considered in developing economies.\n\nCoffee and sandwiches 
 will be provided. We hope to see many of you there.
STATUS:TENTATIVE
TRANSP:TRANSPARENT
CLASS:PUBLIC
LOCATION:Arthur Lewis_G.020/G.021\, Arthur Lewis Building\, Manchester
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