Cash-Flow Taxes in an International Setting

• 成果类型: Article
• 署名作者: Auerbach, Alan J.; Devereux, Michael P.
• 署名单位: University of California System; University of California Berkeley; University of Oxford
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20170108
• 发表日期: 2018
• 页码: 69-94
• 关键词: origin principles; foreign profits; taxation; COMPETITION; income; destination

摘要

We model the effects of cash-flow taxes, differing according to the location of the tax, on the behavior of a multinational producing and selling in two countries with three sources of economic rent: a fixed basic-production factor (located with initial production), mobile managerial skill, and a fixed final production factor (located with consumption). In general, governments face trade-offs in choosing between alternative taxes. A source-based cash-flow tax creates welfare-impairing production and consumption distortions, but falls partially on firm owners who may be nonresident. By contrast, a destination-based cash-flow tax does not distort behavior, but falls only on domestic residents. (JEL F23, H25, H87)