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Cash Flow Taxes in an Open Economy

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Listed:
  • Devereux, Michael
  • Bond, Stephen Roy

Abstract

Academic and policy debates generally consider levying tax on corporate profit on either a residence basis or on a source basis. We explore two alternatives, based on the location of consumption, rather than production ? destination-based, as opposed to source-based or residence-based, taxes. We analyse the properties of these taxes, especially with respect to their impact on location decisions and domestic welfare.

Suggested Citation

  • Devereux, Michael & Bond, Stephen Roy, 2002. "Cash Flow Taxes in an Open Economy," CEPR Discussion Papers 3401, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:3401
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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