Europe has seen several proposals for tax coordination only in the area of capital income taxation, leaving countries free to adjust their labor taxes. The expectation is that higher capital income tax revenues would cause countries to reduce their labor taxes. This paper shows that such changes...

Internationalization offers enhanced opportunities for individuals to place savings abroad and evade domestic saving taxation. This paper asks whether the concomi- tant loss of saving taxation necessarily is harmful. To this end we construct a model of many symmetric countries in which public...

This paper considers a world of many symmetric countries where public goods in principle are financed by taxes on saving, investment and pureprofits. In theory, countries could use all three taxes in combination. In practice, however, the tax instrument set may be restricted by, for instance,...

This paper investigates the scope for international coordination of capital income and profit taxation. The paper considers a world of many symmetric countries where public goods are financed by taxes on capital income and on profits. In the open economy, the authorities have at their disposal a...