Fuest, Clemens; Sultan, Samina (8. March 2018): How will Brexit Affect Tax Competition and Tax Harmonization? The Role of Discriminatory Taxation. CESifo Working Paper No. 6807 |
Full text not available from 'Open Access LMU'.
External fulltext: http://www.cesifo-group.de/DocDL/cesifo1_wp6807.pdf
Abstract
This paper develops a model of tax competition with three countries, which initially form a union where countries refrain from using different tax rates in different sectors of the economy. We study the impact of one country leaving the union. We show that the introduction of discriminatory taxation in one country increases tax policy heterogeneity within the remaining union. Moreover, the incentives for the two remaining countries to harmonize their tax rates decline. We discuss these results in the context of the debate about the tax policy implications of Brexit.
Item Type: | Paper (Discussion Paper) |
---|---|
Keywords: | International taxation; tax competition; preferential tax regimes |
Faculties: | Economics > Chairs > Chair for Public Economics |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | H200, H730 |
Place of Publication: | München |
Language: | English |
ID Code: | 59670 |
Deposited On: | 03. Jan 2019 16:43 |
Last Modified: | 03. Jan 2019 16:43 |
Repository Staff Only: item control page