Capital Mobility and Tax Competition

Author(s): Clemens Fuest;Bernd Huber;Jack Mintz

Source:
    Journal:Foundations and Trends® in Microeconomics
    ISSN Print:1547-9846,  ISSN Online:1547-9854
    Publisher:Now Publishers
    Volume 1 Number 1,

Document Type: Article
Pages: 62 (1-62)
DOI: 10.1561/0700000001

Abstract: This text surveys the literature on the implications of international capital mobility for national tax policies. Our main issue for consideration in this survey is whether taxation of income, specifically capital income will survive, how border crossing investment is taxed relative to domestic investment and whether welfare gains can be achieved through international tax coordination. Our analysis puts special emphasis on multinational firms and the problem of financial arbitrage.

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