KOCGE 모형을 이용한 법인세 개편의 효과 분석 = An Analysis on the Reform of Corporate Income Taxation in Korea Using KOCGE Model

다국어 초록 (Multilingual Abstract)

In this paper using the Korean Computable General Equilibrium(KOCGE) model, we try to analyze quantitatively the effects of five corporate income taxation reform proposals on the economy under the government balanced budget condition. According to the simulation results based on the KOCGE model, first we found that in terms of the effect on the welfare of the economy, the proposal of loweriog the corporate income tax and reducing the government expenditures keeping the government balanced budget condition is better than other proposals of lowering corporate income tax and increasing other taxes. Second, in terms of the effect on the income distribution of the economy, personal income tax substitution for corporate income tax is superior to value added tax substitution. Third, the proposal of integration of corporate income tax and personal income tax will decrease the welfare of the economy as well as the labor supply and savings. Korean government lowered the statutory corporate income tax rate by 1%p in 2001. However, our simulation result shows that there still be a room to lower an extra percentage(2~3%) of the statutory corporate income tax rate to improve both efficiency and income distribution.