Taxation in a Global Economy
In recent years the increasing international mobility of capital, firms and consumers has begun to constrain tax policies in most OECD countries, playing a major role in reforming national tax systems. Haufler uses the theory of international taxation to consider the fundamental forces underlying this process, covering both factor and commodity taxes, as well as their interaction. Topics include a variety of different international tax avoidance strategies - capital flight, profit shifting in multinational firms, and cross-border shopping by consumers. Situations in which tax competition creates conflicting interests between countries are given particular consideration. Haufler addresses the complex issue of coordination in different areas of tax policy, with special emphasis on regional tax harmonization in the European Union. Also included is a detailed introduction to recent theoretical literature.
- Introduction Download (PDF, 95 KByte)
- The policy problem
- Tax competition: a first look
- Factor taxation
- Capital tax competition and country size
- Factor taxation and income distribution
- Profit shifting and the corporate tax structure
- The problem of cross-border shopping
- Switching to the origin principle?
- Optimal taxation with interacting factor and commodity taxes
- Commodity and profit taxation with imperfect firm mobility
- Country size and the location of monopolists
- Summary and policy conclusions Appendix References.
Taxation in a Global Economy,
Cambridge University Press, August 2001
Commodity Tax Harmonization in the European Community.
A General Equilibrium Analysis of Tax Policy Options in the Internal Market,
Reihe "Studies in Contemporary Economics". Physica-Verlag, Heidelberg, September 1993