Der Koalitionsvertrag der Bundesregierung sieht bei der Lohnsteuer die Überführung der Steuerklassenkombination III/V für verheiratete Paare in das Faktorverfahren der Steuerklasse IV vor, mit dem Ziel, die wirtschaftliche Unabhängigkeit und Fairness zu stärken. Das Faktorverfahren könnte...

This paper proposes measures to quantify the effective level and the effective progressivity of taxation in a fiscally decentralized country taking income sorting into account. Using data on the universe of Swiss taxpayers, we find that rich households effectively face significantly lower...

This paper presents a spatial model of a city with two unequally productive jurisdictions. City residents bear a commuting cost to work in either of the two jurisdictions. In each jurisdiction, a fixed public budget must be financed with a wage tax and a head-tax. We compare the first best...

Tax competition is discussed as a source of inefficiency in international taxation and in fiscal federalism. Two preconditions for the existence of such effects of tax competition are that mobile factors locate or reside in jurisdictions with – ceteris paribus – lower tax rates and that...

Tax competition is discussed as a source of inefficiency in international taxation and in fiscal federalism. Two preconditions for the existence of such effects of tax competition are that mobile factors locate or reside in jurisdictions with - ceteris paribus - lower tax rates and that taxes...

Beyond the traditional debates over information exchange vs flat taxation at source, legislative advances have produced interesting innovations and suggestions concerning how to tax international savings. We examine some of these advances, which we then use to set forth and investigate a...

This paper focuses on the study of the effects on social welfare generated by the scheme of joint taxation of the Spanish Personal Income Tax (PIT), whose peculiarity linked to its condition of optionality, allows the minimization of households´ tax bill. Different scenarios are simulated using...

In this paper we develop a framework for studying tax competition and local public goods supply in a setting where real and fiscal externalities interact with local democracy. We use the framework (a) to analyse if there is any reason to believe that local autonomy generally will give a tax race...

This paper studies the interstate effects of decentralized taxation and spending when individuals can work from home (WFH). Because WFH decouples population and employment, the analysis of tax impacts on state populations, employment levels, wages and housing prices is radically different than...

The Organisation for Economic Co-Operation and Development (OECD) recently proposed an interest barrier to fight tax base erosion and profit shifting (BEPS). We use the introduction of such an interest deductibility restriction in Germany as a quasi-experiment and find significant corporate...