Danish government lowers corporate tax - 0 views
-
Jina K on 21 May 13Danish government aims to reduce corporate tax to 22% by 2016. It also aims to increase international competitiveness by offering tax credits, reducing energy tax and public investments. This amendments is implemented in the hope of stimulating growth and make it more attractive for foreigners to run a business in Denmark. Reducing corporate taxes allow companies to have more capital for investments. This could potentially increase factors of production. This wil give corporate incentives to produce more efficiently. In all, this policy can produce a shift in the supply curve to the right, giving positive supply-side benefits.