Working Paper
Capital Taxation May Survive in Open Economies
Michael Braulke, Giacomo Corneo
CESifo, Munich, 2003
CESifo Working Paper No. 975
CESifo, Munich, 2003
CESifo Working Paper No. 975
When capital is perfectly mobile across countries and labour is fixed, a source-based tax on capital both reduces and redistributes world income. We show that under plausible circumstances there always exists a country that benefits from introducing such a tax.