In the United States and elsewhere, basic principles of international taxation have, in recent years, become the subject of vigorous debate and controversy. Historically, the United States has taxed residents, including domestic corporations, on worldwide income, but has allowed them credit for...

This paper explores how the tax treatment of investment and savings affects international capital flows as well as national and global welfare. Focusing on portfolio investment, it evaluates the international effects of capital income taxes in the United States and Japan. During the 1980s, these...