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Haufler, Andreas; Klemm, Alexander; Schejederup, Guttorm (April 2006): Economic integration and redistribuitive taxation. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2006-16
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Abstract

We set up a simple political economy model where economic integration raises the profitability of multinational firms. In this setting redistributive taxation may rise following economic integration, if the effects of the widened income gap dominate the higher excess burden of the tax.