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 …

This paper investigates the consequences of a series of alternative international tax designs on the strategy of a … start with a world where no international tax rules are at work. Then we successively introduce (i) the rules provided by … the OECD Model Tax Convention, (ii) the EU Parent-Subsidiary Directive of July 23, 1990; and (iii) a combination of …

This paper proposes and evaluates alternative methods for addressing the tax treatment of interest expenses in a … multijurisdictional setting. The differential deductibility of debt entailed by various current tax law provisions leads to potential … (comprehensive business income tax) and ACC (allowance for corporate capital). While these regimes provide solutions to ownership …

The reform of corporate and business taxation is central to current tax policy debates in the United States. This paper … provides a framework for analyzing reform proposals by describing the lessons from current economic research for business tax … potential inefficiencies created by the current corporate tax regime. It then discusses three classes of reform proposals. The …