Tax Competition – Beneficial or Harmful? How Various Tax Measures Affect the Allocation of Resources?

Is Tax Evasion Beneficial or Harmful to Growth?

[Abstract] Is tax evasion beneficial or harmful to growth? We approach this question by extending Persson and Tabellini’s (1994) growth model to a plausible world where individuals differ not only in terms of their skill in earning income but also in terms of their skill in concealing income from the tax authority. The Persson-Tabellini model identifies a fundamental tradeoff for redistribution...

Tax Competition : Bane or Boon ?

Tax Competition : How Great Is the Challenge ?

Hardly any week passes by in ‘Old Europe’ without a discussion about tax reforms as a reaction to the fl at tax challenge of new member countries of the European Union (EU). By many observers this is interpreted as an expression of the race to the bottom that supposedly results from fi erce tax competition in Europe and around the globe. Instead of looking at descriptive fi gures of corporate i...

Imperfect tax competition for profits, asymmetric equilibrium and beneficial tax havens

a r t i c l e i n f o We present a model of tax competition for real investment and profits and show that the presence of tax havens in some cases increases the tax revenue of countries. In the first part of the paper, we argue that tax competition for profits is likely to be imperfect in the sense that the jurisdiction with the lowest tax rate does not necessarily attract all shifted profits. ...

Tax competition with parasitic tax havens

⁎ Corresponding author. Stephen M. Ross School of Bu 701 Tappan Street, Rm. R5396, Ann Arbor, MI 48109-1 936 3914; fax: +734 936 8716. E-mail address: [email protected] (J. Slemrod). 1 The OECD report distinguished tax havens from significant revenues from the income tax but have prefe kinds of income, generally restricted to non-residents; about the kind of tax haven covered by the OECD's def...