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The Impact Of Corporate Tax On Investment In South Korea, Hyoungchul Lee
The Impact Of Corporate Tax On Investment In South Korea, Hyoungchul Lee
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The President of the Republic of Korea, Moon Jae-in reformed corporate tax, which is the new establishment of the highest bracket affecting on only companies with 300 billion won or more of sales. However, it caused a great controversy in Korea. The conservative argues that lowering corporate tax rate will improve corporate competitiveness while the progressive says that corporate taxes are neutral in corporate investment decisions.
According to an economic model, the amount of an entity's investment is determined by costs and returns when an additional unit of capital is used. Assuming taxes are raised with depreciation and deductions, it …