OECD Finds Corporate Tax Regimes Can Disfavor Young, Small Firms

Corporate income tax regimes favor larger, more established companies who have the ability to exploit incentives and tax plan, an OECD report published Wednesday found.

The OECD’s report details the adverse effects that complex corporate income tax systems have on “business dynamism,” or the ability for companies — especially small, younger businesses — to enter into markets, expand and create jobs.

The report found countries that decrease their corporate income tax rates can, in some cases, help business dynamism, but the extent that’s true remains unclear.

Corporate tax rates do, however, have a much larger effect on the number ...