Income Tax in Canada, and Other Dominion and Provincial Taxes.

Income Shifting, Investment, and Tax Competition: Theory and Evidence from Provincial Taxation in Canada

We study corporate income tax competition when firms operating in multiple jurisdictions can shift income using financial planning strategies. Several such strategies, particularly intra-corporate lending, appear to be actively pursued by companies to reduce subnational corporate taxes in Canada. A simple theoretical model shows how interjurisdictional tax planning can give rise to asymmetries ...

Dual Income Taxes: A Nordic Tax System

Taxes, the Earned Income Tax Credit, and Marital Status

A common criticism of tax and welfare policy is that these policies create disincentives for marriage, spurring recent calls for “welfare reform” or eliminating the “marriage penalty” in the federal income tax system. These criticisms are lobbied in the midst of a literature with little conclusive evidence on the effect of these policies on marriage. Changes since the mid-1980s in federal incom...

Income Tax Buyouts and Income Tax Evasion

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected tax revenues. This will be the case if (1) the audit probability is constant and the penalty for eva...

Interaction Of Income Distribution, Taxes And Economic Growth