Must losing taxes on saving be harmful?


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Must losing taxes on saving be harmful?

Vis færre oplysninger Huizinga, Harry en_US Nielsen, Søren Bo en_US 2009-02-04T10:27:40Z 2009-02-04T10:27:40Z 2004-12-27T00:00:00Z en_US
dc.description.abstract Internationalization offers enhanced opportunities for individuals to place savings abroad and evade domestic saving taxation. This paper asks whether the concomi- tant loss of saving taxation necessarily is harmful. To this end we construct a model of many symmetric countries in which public goods are financed by taxes on saving and investment. There is international cross-ownership of firms, and countries are assumed to be unable to tax away pure profits. Countries then face an incentive to impose a rather high investment tax also borne by foreigners. In this setting, the loss of the saving tax instrument on account of international tax evasion may prevent the overall saving-investment tax wedge from becoming too high, and hence may be beneficial for moderate preferences for public goods. A world with 'high- spending' governments, in contrast, is made worse off by the loss of saving taxes, and hence stands to gain from international cooperation to restore saving taxation. JEL-Classifcation: H87, H21 Keywords: Capital income taxation, cross-ownership, coordination en_US
dc.format.extent 29 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2004-015 en_US
dc.subject.other kep en_US
dc.title Must losing taxes on saving be harmful? en_US
dc.type wp en_US
dc.accessionstatus modt04dec27 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.idnumber x656455011 en_US København en_US
dc.publisher.year 2004 en_US

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