Advanced Search
MyIDEAS: Login to save this paper or follow this series

Symmetric cash flow-taxation and cross-border investments

Contents:

Author Info

  • Kramer, Frank
Registered author(s):

    Abstract

    The discussion about income versus consumption as the ideal tax base looks back on a long history. In recent years, the debate about income versus consumption as the better tax base reemerged in the United States (2002) and in Germany (2006). In view of the long history of the debate, it is surprising that still relatively little research has been done on crossborder-investments in a cash flow-tax system. The presented article tries to fill this gap. For the case of a harmonized introduction of symmetric cash flow-tax systems in several countries, rules are developed that could guarantee a systematic and feasible treatment of crossborder investments. Preference is given to the RF-base-cash flow-tax on the personal level without a separate company tax. As a result the presented article states, that a coordinated introduction of symmetric cash flow-tax systems in several neighboring countries could be possible. To guarantee the success of the reform, each country must be willing to commit to intensive cooperation in tax matters. A unilateral introduction of a cash flow-tax and the resulting clash of a consumption-based tax system with an income-based tax system - the socalled collision-case - will be addressed in a following paper. -- Die Frage, ob das Einkommen oder der Konsum die vorziehenswürdige Bemessungsgrundlage bildet, weist eine lange Tradition auf. In der jüngeren Vergangenheit erlebte die Frage angesichts neuer Reformvorschläge in den USA (2002) und in Deutschland (2006) eine Renaissance. Angesichts der langen Historie der Diskussion überrascht es, dass die steuerliche Behandlung grenzüberschreitender Investitionen in einem Cash-flow-Steuer-System bisher kaum untersucht wurde. Der vorliegende Artikel versucht diese Lücke zu schließen. Für den Fall der Einführung gleicher Cash-flow-Steuer-Systeme in allen Ländern (Harmoniefall) werden Regelungen entwickelt, die eine systematische und durchführbare Besteuerung grenzüberschreitender Investitionen sicherstellen. Als betrachtetes Cash-flow-Steuer-System wird eine RF-base-Cash-flow-Steuer auf persönlicher Ebene ohne eigenständige Besteuerung auf Unternehmungsebene herangezogen. Der vorliegenden Artikel kommt zum Ergebnis, dass eine koordinierte Einführung gleicher Cash-flow-Steuer-Systeme möglich ist. Voraussetzung dafür ist allerdings eine enge Kooperation der Länder in Steuerfragen. Die unilaterale Einführung eines Konsumsteuersystems in einem einzelnen Land und das daraus resultierende Zusammentreffen von Konsumsteuersystem und Einkommensteuersystem - der sog. Kollisionsfall - werden in einem folgenden Beitrag untersucht.

    Download Info

    If 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.
    File URL: http://econstor.eu/bitstream/10419/54955/1/683479199.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Bayreuth, Chair of Finance and Banking in its series Bayreuth Working Papers on Finance, Accounting and Taxation (FAcT-Papers) with number 2009-03.

    as in new window
    Length:
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:zbw:bayfat:200903

    Contact details of provider:
    Postal: Universitätsstraße 30, 95440 Bayreuth
    Web page: http://www.fiba.uni-bayreuth.de/de/index.html
    More information through EDIRC

    Related research

    Keywords: Cash flow-tax; consumption tax; international taxation; cross-border investments;

    Find related papers by JEL classification:

    References

    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.:
    as in new window
    1. McLure, Charles E. Jr., 1992. "Substituting Consumption-Based Direct Taxation for Income Taxes as the International Norm," National Tax Journal, National Tax Association, vol. 45(2), pages 145-54, June.
    2. Zodrow, George R., 1995. "Taxation, uncertainty and the choice of a consumption tax base," Journal of Public Economics, Elsevier, Elsevier, vol. 58(2), pages 257-265, October.
    3. Zodrow, George R. & McLure, Charles E. Jr., 1988. "Implementing direct consumption taxes in developing countries," Policy Research Working Paper Series 131, The World Bank.
    4. Syed M. Ahsan & Panagiotis Tsigaris, 2003. "Choice of Tax Base Revisited: Cash Flow vs. Prepayment Approaches to Consumption Taxation," CESifo Working Paper Series 983, CESifo Group Munich.
    5. Michael Keen & John King, 2002. "The Croatian profit tax: an ACE in practice," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 23(3), pages 401-418, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:zbw:bayfat:200903. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.