Tax competition, tax exporting and higher-government choice of tax instruments for local governments

• 成果类型: Article
• 署名作者: Braid, RM
• 署名单位: Wayne State University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2004.04.004
• 发表日期: 2005
• 页码: 1789-1821
• 关键词: Tax competition; tax exporting; property tax; local wage tax; local income tax

摘要

This paper presents a theoretical model with tax exporting due to external ownership of a fraction theta of the land in each local jurisdiction. There are n local jurisdictions in a metropolitan area (n >= 1) and many metropolitan areas in a world economy. The paper examines the usage of business property taxes and source-based wage taxes by local jurisdictions, first in the presence of and then in the absence of residence-based lump-sum taxes, and how this depends on theta and n. The paper then examines the choice of a world, national or state government as to whether to allow local (metropolitan or sub-metropolitan) governments to use business property taxes, wage taxes or both, assuming that the local governments choose the actual tax rates. (c) 2004 Elsevier B.V. All rights reserved.