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-post federal policy internalizes horizontal fiscal externalities, insulating tax policy from capital mobility. Federal policy … externalities welfare-deteriorating relative to tax competition. …
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-post federal policy internalizes horizontal fiscal externalities, insulating tax policy from capital mobility. Federal policy … externalities welfare-deteriorating relative to tax competition. …
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This paper analyzes the impact of tax competition between two countries of unequal per-capita capital endownments on tax rates and efficiency when distorting wage, residence-based and source-based capital taxes (or any combination of two instruments) are available for governments. The national...
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