International Percussions of Direct Taxes
This peper anlyzes the impact of tax competition between two countries of un- equal per-capita capital endownments on tax rates and efficiency when distorting wage, residence-based and source-based capital taxes (or any combination of two instruments) are available for governments. The national welfare costs and benefits of tax rate varia- tions are shown to be ambiguous in the asymmetric Nash equilibrium due to the existence of tax base and terms of trade effects. Moreover, numerical simulation results indicate that non-cooperative equilibria in Nash strategies are inefficient from an international perspective, even if residence-based capital taxes are in the set of tax instruments available to fiscal authorities.
|Date of creation:||Jan 1999|
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- Stefan Homburg, 1999. "Competition and Co-ordination in International Capital Income Taxation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 56(1), pages 1-17, March.
- Jacob Frenkel & Assaf Razin & Efraim Sadka, 1991.
"International Taxation in an Integrated World,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262512149, March.
- Wildasin, David E., 1989.
"Interjurisdictional capital mobility: Fiscal externality and a corrective subsidy,"
Journal of Urban Economics,
Elsevier, vol. 25(2), pages 193-212, March.
- WILDASIN, David E., . "Interjurisdictional capital mobility: Fiscal externality and a corrective subsidy," CORE Discussion Papers RP 831, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Michael Keen & Hannu Piekkola, 1996.
"Simple rules for the optimal taxation of international capital income,"
IFS Working Papers
W96/18, Institute for Fiscal Studies.
- Keen, Michael & Piekkola, Hannu, 1997. " Simple Rules for the Optimal Taxation of International Capital Income," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(3), pages 447-61, September.
- Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
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