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Tax Competition, Benefit Taxes, and Fiscal Federalism

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  • Goodspeed, Timothy J.

Abstract

As the world becomes more globalized and resources become more internationally mobile, the issue of tax competition is moving to the forefront of debates surrounding national tax systems. Those who have studied taxation in a federal system of government will recognize that this debate is not new. This paper presents the conceptual issues that have arisen concerning tax competition in the fiscal federalism literature, and explores the reasons why the empirical measurement of the effects of tax competition, particularly corporate tax competition, is so difficult. Given the complicated nature of the problem and the theoretical ambiguity on the consequences of tax competition, it should perhaps not be surprising for the empirical literature to find that competition sometimes increases and sometimes decreases tax rates.

Suggested Citation

  • Goodspeed, Timothy J., 1998. "Tax Competition, Benefit Taxes, and Fiscal Federalism," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(3), pages 579-586, September.
    • Handle: RePEc:ntj:journl:v:51:y:1998:i:3:p:579-86
    DOI: 10.1086/NTJ41789353
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    Cited by:

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    2. Paweł Felis & Henryk Rosłaniec, 2019. "Local Authority Tax Policy in Poland. Evidence from the Union of Polish Metropolises," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(1), March.
    3. Paweł Felis & Henryk Rosłaniec, 2017. "Wykorzystanie podatku od nieruchomości w lokalnej polityce podatkowej miast Unii Metropolii Polskich," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 45-67.
    4. Benoît Le Maux, 2009. "Governmental behavior in representative democracy: a synthesis of the theoretical literature," Public Choice, Springer, vol. 141(3), pages 447-465, December.
    5. Rocabado Mejía, Carlos, 2006. "La Asignación Tributaria en Bolivia," Documentos de trabajo 7/2006, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    6. Rosanne Altshuler & Timothy J. Goodspeed, 2015. "Follow the Leader? Evidence on European and US Tax Competition," Public Finance Review, , vol. 43(4), pages 485-504, July.
    7. Joshua C. Hall & Justin M. Ross, 2010. "Tiebout Competition, Yardstick Competition, and Tax Instrument Choice: Evidence from Ohio School Districts," Public Finance Review, , vol. 38(6), pages 710-737, November.
    8. Askoldas Podviezko & Lyudmila Parfenova & Andrey Pugachev, 2019. "Tax Competitiveness of the New EU Member States," JRFM, MDPI, vol. 12(1), pages 1-19, February.
    9. Marija A. Troyanskaya, 2017. "Competition in Taxation and the Forms of its Implementation among the Subjects of the Russian Federation," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 3(3), pages 182-198.
    10. Schmidt, Torsten, 2001. "Finanzreformen in der Bundesrepublik Deutschland: Analyse der Veränderungen der Finanzverfassung von 1949 bis 1989," RWI Schriften, RWI - Leibniz-Institut für Wirtschaftsforschung, volume 67, number 67.

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