Capital Income Tax Coordination and the Income Tax Mix

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Capital Income Tax Coordination and the Income Tax Mix

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dc.contributor.author Huizinga, Harry en_US
dc.contributor.author Nielsen, Søren Bo en_US
dc.date.accessioned 2009-02-04T10:27:47Z
dc.date.available 2009-02-04T10:27:47Z
dc.date.issued 2005-12-01T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7582
dc.description.abstract Europe has seen several proposals for tax coordination only in the area of capital income taxation, leaving countries free to adjust their labor taxes. The expectation is that higher capital income tax revenues would cause countries to reduce their labor taxes. This paper shows that such changes in the mix of capital and labor taxes brought on by capital income tax coordination can potentially be welfare reducing. This reflects that in a non-cooperative equilibrium capital income taxes may be more distorting from an international perspective than are labor income taxes. Simulations with a simple model calibrated to EU public finance data suggest that countries indeed lower their labor taxes in response to higher coordinated capital income taxes. The overall welfare effects of capital income tax coordination, however, are estimated to remain positive. JEL Classification: F20, H87 en_US
dc.format.extent 35 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2005-024 en_US
dc.title Capital Income Tax Coordination and the Income Tax Mix en_US
dc.type wp en_US
dc.accessionstatus modt05dec01 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Nationaløkonomi en_US
dc.contributor.department Centre for Economic and Business Research en_US
dc.contributor.departmentshort en_US
dc.contributor.departmentshort CEBR
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentuk Centre for Economic and Business Research en_US
dc.contributor.departmentukshort ECO en_US
dc.contributor.departmentukshort CEBR en_US
dc.description.notes This draft: October 2005 en_US
dc.idnumber x65650411x en_US
dc.publisher.city København en_US
dc.publisher.year 2005 en_US


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