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Strategic Tax Competition in Switzerland: Evidence from a Panel of the Swiss Cantons Author info | Abstract | Publisher info | Download info | Related research | Statistics Lars Feld ()
Emmanuelle Reulier ()
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Tax competition is discussed as a source of inefficiency in international taxation and in fiscal federalism. Two preconditions for the existence of such effects of tax competition are that mobile factors locate or reside in jurisdictions with – ceteris paribus – lower tax rates and that taxes are actually set strategically in order to attract mobile production factors. It is well known from studies about Swiss cantonal and local income tax competition that Swiss taxpayers reside where income taxes are low. In this paper, empirical results on strategic tax setting by cantonal governments are presented for a panel of the Swiss cantons from 1984 to 1999. Completing the evidence on Swiss tax competition, the income tax rates in cantons are lower, the lower the tax rates of their neighbors.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1516.
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Date of creation: 2005Date of revision:
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Keywords: tax competition ; strategic tax setting ; personal income taxes ; Other versions of this item:
Find related papers by JEL classification: H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
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Lars Feld & Gebhard Kirchgaessner & Christoph A. Schaltegger, 2003.
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Lars P. Feld & Gebhard Kirchgässner, 2004.
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