Concerns have been expressed that, in an era of high capital mobility, international tax competition will lead to an inexorable decline in taxes levied on capital, shifting the tax burden to the relative immobile inputs, labour, and land. Some view this as a threat to the financial and political underpinnings of the welfare state, which is based on the redistribution of income. On the other hand, as Mintz (1992) pointed out, with globalisation there may be more opportunities to shift the burden of taxation to foreigners, especially if other governments provide foreign tax credit, because globalisation may increase the share of the assets in the economy that are owned by foreigners. In this paper, I develop some analytical models to determine how these offsetting forces will affect the optimal rates of capital taxation in a small open economy.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Publisher Info
Paper provided by ATAX, University of New South Wales in its series Taxation with number
Discussion Paper #9.
For technical questions regarding this item, or to correct its listing, contact: (Research Assistant) The email address of this maintainer does not seem to be valid anymore. Please ask Research Assistant to update the entry or send us the correct address..
References listed on IDEAS 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.: