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

Classification table

	True
Classified	D	~D	Total
+	415	24	439
−	21	108	129
Total	436	132	568
Classified + if predicted Pr (D) >=0,5
True D defined as 10
Sensitivity		Pr (– +|~D)	95.18%
Specificity		Pr (– −| D)	81.82%
Correctly classified			92.08%

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

	Model with 3 indices		Model without indices
Variable	Marginal effects.	p-value	Marginal effects.	p-value
indCIT	0.005	0.000
Indcitincome	0.002	0.010
Indeconsize	0.001	0.006
leftright	−0.058	0.000	−0.080	0.000
prosconsEU	0.549	0.000	0.580	0.000
relEU	−0.264	0.000	−0.500	0.000
term	−0.001	0.946	0.011	0.486
sex	0.018	0.452	0.025	0.428
educ	0.016	0.510	0.007	0.826
age	−0.0004	0.756	−0.0003	0.858
amendment	−0.0004	0.851	−0.002	0.348
NEU	0.146	0.000	−0.142	0.008
LR chi2(13)	38.60		297.36
Prob>chi2	0.000		0.000
Pseudo R2	0.6293		0.4696

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

Pseudo R2	Model with 4 indicators	Model with 3 indicators	Model without indicators
McFadden	0,642	0,629	0,470
McKelveya and Zavoiny	0,751	0,750	0,630
Count R2	0,921	0,910	0,894
Adjusted count R2	0,659	0,614	0,558

Tax benefit index and its components

2012	Net 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)
Austria	74	57	78	11	55
Belgium	57	92	59	13	55
Bulgaria	0	0	87	1	22
Croatia	30	38	80	1	37
Cyprus	25	0	0	0	6
Czechia	23	34	57	5	30
Denmark	87	57	67	9	55
Estonia	22	42	93	0	39
Finland	82	56	78	7	56
France	82	100	65	76	81
Germany	72	77	70	100	80
Greece	72	38	100	6	54
Hungary	27	41	96	3	42
Ireland	82	10	74	6	43
Italy	71	82	74	58	71
Latvia	33	19	89	0	35
Lithuania	43	19	96	1	39
Luxembourg	33	72	13	1	30
Netherlands	100	57	78	23	65
Poland	39	34	78	14	41
Portugal	51	82	65	5	51
Romania	33	23	83	4	36
Slovakia	26	34	72	2	33
Slovenia	53	31	98	1	46
Spain	66	77	74	37	64
Sweden	70	62	70	15	54
United Kingdom	73	54	65	75	67

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

Variable	marginal effects	p-value
indFDI	−0.003	0.013
indCIT	0.004	0.000
indcitincome	0.004	0.004
indeconsize	0.001	0.005
leftright	−0.056	0.000
prosconsEU	0.537	0.000
relEU	−0.221	0.001
term	−0.004	0.758
sex	0.023	0.318
educ	0.013	0.595
age	−0.0001	0.937
amendment	−0.0001	0.960
NEU	0.045	0.419
LR chi2(13)	395.62
Prob>chi2	0.000
Pseudo R2	0.6424

Decomposition of tax base in formula apportionment

		Firm 1	Firm 2	Firm 3	Together
I	Consolidated tax base	–			S
II	Assets	A1	A2	A3	A1 + A2 + A3 = A
	Employment	E1	E2	E3	E1 + E2 + E3 = E
	Remuneration	R1	R2	R3	R1 + R2 + R3 = R
	Turnover	T1	T2	T3	T1 + T2 + T3 = T
III	Share
	Assets	A1A=a1{{{A_1}} \over A} = {a_1}	A2A=a2{{{A_2}} \over A} = {a_2}	A3A=a3{{{A_3}} \over A} = {a_3}
	Employment	E1E=e1{{{E_1}} \over E} = {e_1}	E2E=e2{{{E_2}} \over E} = {e_2}	E3E=e3{{{E_3}} \over E} = {e_3}
	Remuneration	R1R=r1{{{R_1}} \over R} = {r_1}	R2R=r2{{{R_2}} \over R} = {r_2}	R3R=r3{{{R_3}} \over R} = {r_3}
	Turnover	T1T=t1{{{T_1}} \over T} = {t_1}	T2T=t2{{{T_2}} \over T} = {t_2}	T3T=t3{{{T_3}} \over T} = {t_3}
IV	Tax base
	Firm 1	S*(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 2	S*(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 3	S*(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

Variable	Observations	Mean	Standard deviation	Min	Max
vote	574	0.76	0.43	0	1
leftright	574	4.28	1.6	1	8
prosconsEU	574	0.70	0.46	0	1
relEU	574	0.38	0.23	0.03	0.84
indFDI	568	60.98	22.38	0	100
indCIT	568	60.04	26.09	0	100
indCITincome	568	72.40	13.03	0	100
indeconsize	568	40.02	36.20	0	100
term	574	1.86	1.16	1	8
sex	574	0.36	0.48	0	1
educ	574	0.38	0.49	0	1
age	574	54.18	10.95	29	81
amendment	574	1.08	5.69	0	75
NUE	574	0.29	0.45	0	1