Optimal Cooperative Taxation in the Global Economy

Público
Creator Series Issue number
  • 581
Date Created
  • 2019-04-29
Abstract
  • We use the Ramsey and Mirrlees approaches to study how fiscal and trade policy should be set cooperatively when governments must raise revenues with distorting taxes. Free trade and unrestricted capital mobility are optimal. Efficient outcomes can be implemented with taxes only on final consumption goods and labor income. We study alternative tax systems, showing that uniform taxation of household asset returns, and not taxing corporate income yields efficient outcomes. Border adjustments exempting exports from and including imports in the tax base are desirable. Destination- and residence-based tax systems are desirable compared to origin- and source-based systems.

Subject (JEL) Palabra Clave Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
Publisher
  • Federal Reserve Bank of Minneapolis
Resource type DOI
License

Relaciones

En Collection:
Última modificación

Contenido Descargable

Descargar PDF

Zipped Files

Download a zip file that contains all the files in this work.

Elementos