This paper analyzes the welfare effects of capital tax coordination in a simple model of fiscal competition where fiscal policy is subject to majority voting and households differ with respect to their labor and capital income. It turns out that a coordinated capital tax increase may raise or...

This paper discusses the role of multinational firms and double taxation treaties for corporate income taxation in open economies. We show that it is optimal for a small open economy to levy positive corporate income taxes if multinational firms are taxed according to the full taxation after...

Die Europäische Kommission hat kürzlich eine Reihe von Vorschlägen zur umfassenden Koordination der Unternehmensbesteuerung im europäischen Binnenmarkt vorgelegt. Der vorliegende Beitrag analysiert diese Vorschläge und kommt zu dem Ergebnis, dass sie keine überzeugende Grundlage für die...

This paper analyses the optimal taxation of dividends and other types of income from portfolio investment. We show that, in an open economy, it is not desirable to offer double taxation relief for dividends paid by domestic firms to domestic households. This result holds for fairly general...

Recent contributions to the theory of taxation in imperfect labour markets argue that tax progression raises welfare and employment in the presence of involuntary unemployment. The underlying theoretical analysis takes the endowment of workers with human capital as given. It is well known,...

This paper analyses the implications of unemloyment for fiscal competition and tax coordination among small open economies. Unemployment is modeled as resulting from wage bargaining. The analysis focuses on the effect of labour and capital tax co-ordination on welfare. We show that, while...