Author: Ronald B. DaviesPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 36
Book Description
Tax competition in an expanding European Union
Author: Ronald B. DaviesPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 36
Book Description
Tax Competition and Tax Structure in Open Federal Economies
Author: Timothy GoodspeedPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Tax competition arguments suggest that a government that operate in an open economy (such as local governments) should not and will not rely on non-benefit taxes, such as the income tax. Yet we observe reliance on income taxes by local governments in many countries, and such reliance changes over time. Evidence from a panel data set of 13 OECD countries over the period 1975-1984 suggests that competition between levels of government (resulting in a vertical fiscal externality) and between governments at the same level (resulting in a horizontal fiscal externality) provide some economic rationale for these changes. Moreover, the evidence indicates that the vertical and horizontal fiscal externalities interact. These results have some interesting implications for fiscal policy in the European Union, particularly as the EU continues to evolve. One implication for the EU is that enlargement that increases tax base disparities within the EU (and is not accompanied by an EU-level income tax) will tend to lower national income tax rates, although this must be qualified because it also depends on the mobility of the population. A second implication is that fiscal expansion of the EU to include an EU-level income tax may tend to lower the reliance of national governments on income taxes through the vertical externality, but may also tend to equalize tax bases across countries, and so increase reliance on national income taxes through the horizontal externality.
Corporate Tax in the European Union
Author: Firdaus MaldarPublisher:
ISBN:
Category : Corporations
Languages : en
Pages : 13
Book Description
The European Union (EU) was the largest single market in the world. The idea of harmonizing the corporate tax rate, to further the goal of a single market that provides similar conditions to companies across national borders, has been floated in the EU for sometime now but has not been acceptable to all the countries. As investment conditions within the EU become more homogeneous, individual countries like Ireland have used tax competition as a means of differentiating themselves and attracting foreign investment. The expansion of the EU on May 1 st 2004 has brought the issue back into the limelight. High tax member states like Germany have strongly argued for tax harmonization and a minimum corporate tax rate, while low tax member states like Ireland and the new EU members have opposed any such proposal.
The Benefits of Tax Competition
Author: Richard TeatherPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 192
Book Description
Beginning with a primer on international taxation, this IEA monograph shows why the arguments used by governments to prevent tax competition are fallacious. It also outlines the threats to tax competition from the EU and OECD, and proposes ways in which the UK government should respond to those threats.
The Regulation of Tax Competition
Author: Chidozie G. ChukwudumoguPublisher: Edward Elgar Publishing
ISBN: 9781802200348
Category :
Languages : en
Pages : 240
Book Description
This comprehensive book adopts a nuanced yet straightforward approach to analysing the complex phenomenon of international tax competition. Using the ongoing international efforts of the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU) as a basis for its analysis, it explores the mixed effects of tax competition and offers an effective approach that takes account of the asymmetrical global context. Providing a history of the OECD's work on tax competition to date, Chidozie George Chukwudumogu argues against conventional efforts to merely restrict international tax competition, putting forward a wide regulatory approach that is more appropriate and considerate of the inequality of the states involved. The author further explains and simplifies complex terms and principles of international tax policy, demystifies common assumptions about tax competition, and identifies commonalities beyond the often polarizing debates on the topic. The Regulation of Tax Competition will be a crucial resource for academics, researchers and students with an interest in international tax law and policy. Policymakers in both international organisations such as the OECD and EU and in national governments will also benefit from awareness of the arguments explored in this book.
Consequences of the Economic and Monetary Union for the Coordination of Tax Systems in the European Union
Author: Mr.Vito TanziPublisher: International Monetary Fund
ISBN: 1451943016
Category : Business & Economics
Languages : en
Pages : 25
Book Description
With the advent of the economic and monetary union in the European Union (EU), the economic landscape of the EU will bear a striking resemblance to that of the United States in terms of fundamental attributes such as the freedom of internal movements of individuals, capital, and goods within the union, as well as the adoption of a common currency. This paper examines developments in the tax systems of the states in the United States and draws lessons for the need of coordination of EU tax systems.
Who Benefits from Tax Competition in the European Union?
Author: Leon J. H. BettendorfPublisher:
ISBN:
Category : Corporations
Languages : en
Pages : 82
Book Description
Corporate Tax Competition and Coordination in the European Union
Author: Gaëtan NicodèmePublisher:
ISBN:
Category : Corporate taxation
Languages : en
Pages : 60
Book Description
This paper reviews the rationales and facts about corporate tax coordination in Europe. Although statutory tax rates have dramatically declined, revenues collected from corporate taxation are fairly stable and there is so far no evidence of a race-to-the-bottom. The ambiguous results from economic tax theory and the institutional setting have constrained strong EU policy action in the area of tax competition. Yet, there are welfare gains to be expected from tax coordination. Following its 2001 Communication, the European Commission is currently working with Member States on the definition of a common consolidated corporate tax base for European Companies.
Winners and Losers of Tax Competition in the European Union
Author: Enrique G. MendozaPublisher:
ISBN:
Category : Capital levy
Languages : en
Pages : 44
Book Description
"This paper quantifies the macroeconomic effects of capital income tax competition in the European Union using a two-country neoclassical dynamic general equilibrium model. This model incorporates three key externalities of tax competition: the relative price externality, the wealth distribution externality and the fiscal solvency externality. We consider tax strategies limited to the class of time-invariant taxes and allow governments to issue debt to smooth the tax burden. The analysis starts from a pre-tax-competition equilibrium calibrated to represent the United Kingdom and Continental Europe (France, Germany and Italy) using data from the early 1980s, just before the European integration of financial markets. When labor taxes adjust to maintain fiscal solvency, competition does not trigger a race to the bottom' in capital taxes. The UK makes a large welfare gain and cuts its capital tax. Continental Europe increases both labor and capital taxes and suffers a large welfare loss. These results are consistent with evidence showing that over the last two decades the UK lowered its capital tax, while Continental Europe increased both capital and labor taxes. When consumption taxes adjust to maintain fiscal solvency, there is a race to the bottom' in capital taxes but both the UK and Continental Europe are better off than in the pre-tax-competition equilibrium. The gains from coordination in all of these experiments are trivial"--NBER website
International Tax Competition
Author: Rajiv BiswasPublisher:
ISBN: 9781848597587
Category : Competition, International
Languages : en
Pages : 315
Book Description
International tax competition has come to the forefront of global economic policy debate at the outset of the 21st Century. The importance of taxation regimes as an essential factor in driving economic growth, investment inflows and national development has increasingly been recognised.However, there have also been growing concerns amongst the European Union and the OECD countries that tax competition can be harmful to their economies. A large number of Commonwealth developing countries are now potentially affected by the EU and OECD initiatives to regulate international tax competition.This book provides a collection of articles by experts from Commonwealth countries on international tax competition, considering the concerns of affected nations. Issues such as globalisation and fiscal sovereignty, WTO issues, and economic development perspectives are considered with particular reference to the concerns of small and developing economies of the Commonwealth.