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The voting of EU members for common consolidated corporate tax base and the tax benefits


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Classification table

True
ClassifiedD~DTotal
+41524439
21108129
Total436132568
Classified + if predicted Pr (D) >=0,5
True D defined as 10
SensitivityPr (– +|~D)95.18%
SpecificityPr (– −| D)81.82%
Correctly classified92.08%

Logit models without selected indicators reported in the form of marginal effects

Model with 3 indicesModel without indices
VariableMarginal effects.p-valueMarginal effects.p-value
indCIT0.0050.000
Indcitincome0.0020.010
Indeconsize0.0010.006
leftright−0.0580.000−0.0800.000
prosconsEU0.5490.0000.5800.000
relEU−0.2640.000−0.5000.000
term−0.0010.9460.0110.486
sex0.0180.4520.0250.428
educ0.0160.5100.0070.826
age−0.00040.756−0.00030.858
amendment−0.00040.851−0.0020.348
NEU0.1460.000−0.1420.008
LR chi2(13)38.60297.36
Prob>chi20.0000.000
Pseudo R20.62930.4696

Comparison of pseudo R2 for a model with and without selected indicators

Pseudo R2Model with 4 indicatorsModel with 3 indicatorsModel without indicators
McFadden0,6420,6290,470
McKelveya and Zavoiny0,7510,7500,630
Count R20,9210,9100,894
Adjusted count R20,6590,6140,558

Tax benefit index and its components

2012Net FDI to GDP (0–highest FDI, 100–lowest FDI)CIT rate (0 – lowest rate, 100 – highest rate)CIT revenue (0 – highest revenue, 100 – lowest revenue)Economy size (0 – lowest, 100 – highest)Index (the highest index the highest positive impact expected)
Austria7457781155
Belgium5792591355
Bulgaria0087122
Croatia303880137
Cyprus250006
Czechia233457530
Denmark875767955
Estonia224293039
Finland825678756
France82100657681
Germany72777010080
Greece7238100654
Hungary274196342
Ireland821074643
Italy7182745871
Latvia331989035
Lithuania431996139
Luxembourg337213130
Netherlands10057782365
Poland3934781441
Portugal518265551
Romania332383436
Slovakia263472233
Slovenia533198146
Spain6677743764
Sweden7062701554
United Kingdom7354657567

The marginal effects of indicators from tax benefit index on the voting behaviour in CCCTB

Variablemarginal effectsp-value
indFDI−0.0030.013
indCIT0.0040.000
indcitincome0.0040.004
indeconsize0.0010.005
leftright−0.0560.000
prosconsEU0.5370.000
relEU−0.2210.001
term−0.0040.758
sex0.0230.318
educ0.0130.595
age−0.00010.937
amendment−0.00010.960
NEU0.0450.419
LR chi2(13)395.62
Prob>chi20.000
Pseudo R20.6424

Decomposition of tax base in formula apportionment

Firm 1Firm 2Firm 3Together
IConsolidated tax baseS
IIAssetsA1A2A3A1 + A2 + A3 = A
EmploymentE1E2E3E1 + E2 + E3 = E
RemunerationR1R2R3R1 + R2 + R3 = R
TurnoverT1T2T3T1 + T2 + T3 = T
IIIShare
AssetsA1A=a1{{{A_1}} \over A} = {a_1}A2A=a2{{{A_2}} \over A} = {a_2}A3A=a3{{{A_3}} \over A} = {a_3}
EmploymentE1E=e1{{{E_1}} \over E} = {e_1}E2E=e2{{{E_2}} \over E} = {e_2}E3E=e3{{{E_3}} \over E} = {e_3}
RemunerationR1R=r1{{{R_1}} \over R} = {r_1}R2R=r2{{{R_2}} \over R} = {r_2}R3R=r3{{{R_3}} \over R} = {r_3}
TurnoverT1T=t1{{{T_1}} \over T} = {t_1}T2T=t2{{{T_2}} \over T} = {t_2}T3T=t3{{{T_3}} \over T} = {t_3}
IVTax base
Firm 1S*(13*a1+12*13*e1+12*13*r1+13*t1){\bf{\it S}}*\left( {{1 \over 3}*{{\bf{\it a}}_1} + {1 \over 2}*{1 \over 3}*{{\bf{\it e}}_1} + {1 \over 2}*{1 \over 3}*{{\bf{\it r}}_1} + {1 \over 3}*{{\bf{\it t}}_1}} \right)
Firm 2S*(13*a2+12*13*e2+12*13*r2+13*t2){\bf{\it S}}*\left( {{1 \over 3}*{{\bf{\it a}}_2} + {1 \over 2}*{1 \over 3}*{{\bf{\it e}}_2} + {1 \over 2}*{1 \over 3}*{{\bf{\it r}}_2} + {1 \over 3}*{{\bf{\it t}}_2}} \right)
Firm 3S*(13*a3+12*13*e3+12*13*r3+13*t3){\bf{\it S}}*\left( {{1 \over 3}*{{\bf{\it a}}_3} + {1 \over 2}*{1 \over 3}*{{\bf{\it e}}_3} + {1 \over 2}*{1 \over 3}*{{\bf{\it r}}_3} + {1 \over 3}*{{\bf{\it t}}_3}} \right)

Summary statistics of variables used

VariableObservationsMeanStandard deviationMinMax
vote5740.760.4301
leftright5744.281.618
prosconsEU5740.700.4601
relEU5740.380.230.030.84
indFDI56860.9822.380100
indCIT56860.0426.090100
indCITincome56872.4013.030100
indeconsize56840.0236.200100
term5741.861.1618
sex5740.360.4801
educ5740.380.4901
age57454.1810.952981
amendment5741.085.69075
NUE5740.290.4501
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