Economics at your fingertips  

Welfare, Revenue and Indirect Tax Harmonization under the Origin Principle

Miguel-Angel Lopez-Garcia ()

Hacienda Pública Española, 2004, vol. 168, issue 1, 9-25

Abstract: This paper discusses whether some propositions concerning the effects of indirect tax harmonization that have been derived when taxes are levied on a destination basis and revenue is returned to the individuals as a lump-sum transfer can, when accurately reformulated, be extended to a framework where commodities are taxed according to the origin principle and the governments use their revenue to finance the purchase of goods and services. Using a two-country model, it is argued that a non-uniform proportional convergence of domestic taxes towards a properly designed «average » tax structure can be characterized as potentially Pareto-improving. However, these reforms will not, in general, lead to a strict Pareto-improvement where every country is better off without any need for international transfers.

Keywords: : indirect tax harmonization; origin principle; reform of commodity taxes. (search for similar items in EconPapers)
JEL-codes: F15 H87 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... tas/hpe/168_Art1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Hacienda Pública Española from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().

Page updated 2020-03-29
Handle: RePEc:hpe:journl:y:2004:v:168:i:1:p:9-25