Indirect tax harmonization and global public goods
| Autor: | Ourania Karakosta, Miguel-Angel Lopez-Garcia, Christos Kotsogiannis |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Direct tax Origin principle ComputingMilieux_LEGALASPECTSOFCOMPUTING Reform of commodity taxes Tax reform ComputingMilieux_GENERAL Microeconomics Value-added tax Ad valorem tax Tax credit Tax harmonization Accounting Economics State income tax Destination principle Global/local public goods Finance Indirect tax Indirect tax harmonization |
| Zdroj: | Recercat. Dipósit de la Recerca de Catalunya instname Recercat: Dipósit de la Recerca de Catalunya Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya) Dipòsit Digital de Documents de la UAB Universitat Autònoma de Barcelona |
| Popis: | Financial support from the Catalan Government Science Network (2009SGR and XREPP) and the Spanish Ministry of Education and Science Research Project (ECO2009-10003) is gratefully acknowledged. This paper identifies conditions under which, starting from any tax-distorting equilibrium, destination- and origin-based indirect tax-harmonizing reforms are potentially Pareto improving in the presence of global public goods. The first condition (unrequited transfers between governments) requires that transfers are designed in such a way that the marginal valuations of the global public goods are equalized, whereas the second (conditional revenue changes) requires that the change in global tax revenues, as a consequence of tax harmonization, is consistent with the under/over-provision of global public goods relative to the (modified) Samuelson rule. Under these conditions, tax harmonization results in redistributing the gains from a reduction in global deadweight loss and any changes in global tax revenues according to the Pareto principle. And this is the case independently of the tax principle in place (destination or origin). |
| Databáze: | OpenAIRE |
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