Are the predictions of tax competition theory wrong? Recent empirical results on capital taxation suggest that this might be the case. While tax competition literature predicts that capital taxes decrease with increasing globalisation, empirical studies on various data find contradicting...

This contribution provides evidence for the hypothesis that trade increases growth through its curbing effect on capital taxes. The analyzed mechanism includes two different steps and considers the critical points of both the theoretical and empirical studies in this field. In particular, the...

This contribution provides evidence for the hypothesis that trade increases growth through its curbing effect on capital taxes. The analysed mechanism includes two different steps and considers the critical points of both the theoretical and empirical studies in this field. In particular, the...

It is often feared that tax competition might lead to a "race to the bottomʺ. The consequence of a decline of tax rates on capital income would be shrinking capital income tax revenues and difficulties for national governments to perform their usual tasks. The paper analyzes what happened to...