Globalisation and the mix of wage and profit taxes

Arbeitspapier

This paper analyses the development of the ratio of corporate taxes to wage taxes using a simple political economy model with internationally mobile and immobile firms. Among other results, our model predicts that countries reduce their corporate tax rate, relative to the wage tax, either when preferences for public goods increase or when a rising share of capital is employed in multinational firms. The predicted relationships are tested using panel data for 23 OECD countries for the period 1980 through 2001. The results of the empirical analysis support our central hypotheses.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1678

Classification and Topics

• Classification: Wirtschaft ; State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects ; Taxation, Subsidies, and Revenue: General ; Multinational Firms; International Business ; Economic Integration
• Subject: capital and labour taxes ; economic integration ; multinational firms ; Unternehmensbesteuerung ; Lohnsteuer ; Steuerbelastung ; Public Choice ; Globalisierung ; Internationale Kapitalmobilität ; Multinationales Unternehmen ; Steuerwettbewerb ; Schätzung ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Haufler, Andreas ; Klemm, Alexander ; Schjelderup, Guttorm
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/19142
• Last update: 10.03.2025, 11:42 AM CET