HOW WILL BREXIT AFFECT TAX COMPETITION AND TAX HARMONIZATION? THE ROLE OF DISCRIMINATORY TAXATION

Clemens Fuest and Samina Sultan

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: This paper develops a model of tax competition with three countries that initially form a union where countries refrain from using different tax rates in different sectors of the economy. We study the impact of one country leaving the union. We show that the introduction of discriminatory taxation in one country increases tax policy heterogeneity within the remaining union. Moreover, the incentives for the two remaining countries to harmonize their tax rates decline. We discuss these results in the context of the debate on the tax policy implications of Brexit.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Published in National Tax Journal 1 72(2019): pp. 111-137

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: How Will Brexit Affect Tax Competition and Tax Harmonization? The Role of Discriminatory Taxation (2019)
Working Paper: How will Brexit Affect Tax Competition and Tax Harmonization? The Role of Discriminatory Taxation (2018)
Working Paper: How Will Brexit Affect Tax Competition and Tax Harmonization? The Role of Discriminatory Taxation (2017)
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: https://EconPapers.repec.org/RePEc:lmu:muenar:78238

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().