Canada - U.S. Free Trade and Pressures for Tax Harmonization
AbstractTo what degree will the recent free-trade agreement create pressure on the U.S. and Canada to modify, and perhaps harmonize, their tax systems? What will be the implications of the more extensive policy changes now going on within the E.C.? This paper examines the types of pressures for reform created by recent agreements, focussing in turn on the pressures created by capital mobility, elimination to tariff and nontariff barriers, and mobility of individuals. As shown in the local public finance literature, unrestricted individuals and firms pay tax in accordance with the costs they impose on the community. More limited mobility should have more limited effects. Since existing national tax structures differ dramatically from those that have evolved to finance local governments, however, even limited mobility can force substantial changes in each country's fiscal structure. In addition to characterizing the equilibrium tax structure that should result, given increased mobility, the paper also explores the circumstances in which there can be mutual gains from moving away from the equilibrium tax structure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3327.
Date of creation: Apr 1990
Date of revision:
Publication status: published as Canada-U.S. Tax Comparisons John B. Shoven and John Whalley Eds., University of Chicago Press, 1992
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Gordon, R.H., 1990. "Canada-U.S. Free Trade And Pressures For Tax Harmonization," Working Papers 260, Research Seminar in International Economics, University of Michigan.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hartman, David G., 1985. "Tax policy and foreign direct investment," Journal of Public Economics, Elsevier, vol. 26(1), pages 107-121, February.
- Robin Boadway & Neil Bruce, 1988.
"Problems with Integrating Corporate and Personal Income Taxes in an Open Economy,"
735, Queen's University, Department of Economics.
- Boadway, Robin & Bruce, Neil, 1992. "Problems with integrating corporate and personal income taxes in an open economy," Journal of Public Economics, Elsevier, vol. 48(1), pages 39-66, June.
- Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production II: Tax Rules," American Economic Review, American Economic Association, vol. 61(3), pages 261-78, June.
- Giovannini, A. & Hines, J.R.J., 1990.
"Capital Flight And Tax Competition: Are There Viable Solutions To Both Problems?,"
51, Princeton, Woodrow Wilson School - Discussion Paper.
- Alberto Giovannini & James R. Hines, Jr., 1990. "Capital Flight and Tax Competition: Are There Viable Solutions to Both Problems?," NBER Working Papers 3333, National Bureau of Economic Research, Inc.
- Giovannini, Alberto & Hines Jr, James R, 1990. "Capital Flight and Tax Competition: Are there Viable Solutions to Both Problems," CEPR Discussion Papers 416, C.E.P.R. Discussion Papers.
- Roger H. Gordon & Hal R. Varian, 1986.
"Taxation of Asset Income in the Presence of a World Securites Market,"
NBER Working Papers
1994, National Bureau of Economic Research, Inc.
- Gordon, Roger H. & Varian, Hal R., 1989. "Taxation of asset income in the presence of a world securities market," Journal of International Economics, Elsevier, vol. 26(3-4), pages 205-226, May.
- Findlay, Christopher C, 1986. "Optimal Taxation of International Income Flows," The Economic Record, The Economic Society of Australia, vol. 62(177), pages 208-14, June.
- Gordon, R.H. & Levisohn, J., 1989.
"The Linkage Between Domestic Taxes And Borber Taxes,"
244, Research Seminar in International Economics, University of Michigan.
- Roger H. Gordon & James A. Levinsohn, 1990. "The Linkage between Domestic Taxes and Border Taxes," NBER Chapters, in: Taxation in the Global Economy, pages 357-396 National Bureau of Economic Research, Inc.
- Joseph E. Stiglitz, 1986. "The General Theory of Tax Avoidance," NBER Working Papers 1868, National Bureau of Economic Research, Inc.
- Bond, E.W. & Samuelson, L., 1988.
"Strategic Behavior And The Rules For International Taxation Of Capital,"
3-88-10, Pennsylvania State - Department of Economics.
- Bond, Eric W & Samuelson, Larry, 1989. "Strategic Behaviour and the Rules for International Taxation of Capital," Economic Journal, Royal Economic Society, vol. 99(398), pages 1099-1111, December.
- Buchanan, James M. & Goetz, Charles J., 1972. "Efficiency limits of fiscal mobility: An assessment of the tiebout model," Journal of Public Economics, Elsevier, vol. 1(1), pages 25-43, April.
- Assaf Razin & Joel Slemrod, 1990. "Taxation in the Global Economy," NBER Books, National Bureau of Economic Research, Inc, number razi90-1.
- Leechor, Chad & Mintz, Jack, 1993. "On the taxation of multinational corporate investment when the deferral method is used by the capital exporting country," Journal of Public Economics, Elsevier, vol. 51(1), pages 75-96, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.