A recent Spanish tax reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. We use individual-level information from Social Security records over a period of one decade. Conditional on moving, taxes have a significant effect on location choice....

This paper analyzes mobility responses to a large, regressive local income tax cut benefiting the top 1% in the Swiss Canton of Obwalden in 2006. DiD estimations comparing Obwalden with neighboring cantons confirm that the reform was successful in increasing the share of rich taxpayers in the...

In November 2012, California voters passed increases to state marginal income tax rates of 1 to 3 percentage points for upper-income households. Drawing on the universe of California income tax filings, we present new findings about the effects of personal income taxation on household location...

This paper explores the migration patterns of California taxpayers and analyzes the potential economic and revenue implications of this movement using the universe of California individual income tax filings from 2000 to 2019. While departure rates have outweighed in-migration rates for most tax...

Some governments have recently called for international accords restricting the use of preferential taxes targeted to attract mobile tax bases from abroad. Are such agreements likely to discourage tax competition or conversely cause it to spread? We study a general model of competition for...

A theoretical model describes the local choice of the tax rate on capital income. It establishes preferences and various fiscal conditions - including the tax rates of competing jurisdictions - as determinants of the tax rate. The empirical implications are tested using a large panel of...

The impact of corporate income taxes on location decisions of firms is widely debated in the tax competition literature. Tax rate differences across jurisdictions may lead to distortions of firms investment decisions. Empirical evidence on tax induced relocation and subsequent economic...

This paper is concerned with fiscal externalities arising from local taxation of a mobile factor. Using a panel of more 1100 local jurisdictions it provides empirical evidence on how the local tax rate as well as the tax rate in the neighborhood affect the local tax base. The results support the...

I investigate whether the spatial administrative structure of agglomerations is associated with local business tax rates in core cities of agglomerations. Using data for German municipalities, I define agglomerations based on distances and based on cumulative population densities. The results...

An ongoing debate in the tax competition literature is the desirability for a system of countries, or regions, to restrict the preferential treatment of different forms of capital. A widespread belief is that without such restrictions, countries would aggressively compete for mobile capital,...