Details

Autor(en) / Beteiligte

• Becker, Johannes
• Riedel, Nadine

Titel

Multinational firms mitigate tax competition

Ist Teil von

• Economics letters, 2013-02, Vol.118 (2), p.404-406

Ort / Verlag

Amsterdam: Elsevier B.V

Erscheinungsjahr

2013

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• An increase in the taxation of foreign affiliates reduces domestic investment, as has recently been empirically shown in Becker and Riedel (2012). This paper investigates the implication of this finding for tax competition. It is shown that an increase in the number of multinational firms (in contrast to purely national firms) may actually mitigate tax competition — counter to the popular opinion that multinational firms undermine the national capacity to levy source-based taxes. ► We build a two-country model with national and multinational firms. ► Governments levy source-based taxes and engage in tax competition with each other. ► An increase in the share of multinational firms mitigates tax competition.