Symmetric tax competition under formula apportionment
MetadataShow full item record
- Discussion papers (SAM) 
This paper compares property taxation to a corporate income tax based on formula apportionment in a model where identical countries compete to attract capital. We find that if countries can pair a residence-based capital tax with a property tax (source tax on capital) the tax equilibrium is efficient. In contrast, the use of a 2-factor FA scheme based on sales and capital combined with a residence-based capital tax leads to an inefficient outcome.
PublisherNorwegian School of Economics and Business Administration. Department of Economics