DP3401 Cash Flow Taxes in an Open Economy
|Author(s):||Stephen Roy Bond, Michael P. Devereux|
|Publication Date:||May 2002|
|Keyword(s):||corporation tax, investment, location|
|JEL(s):||F21, F23, H25, H32, H87|
|Programme Areas:||Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=3401|
Academic and policy debates generally consider levying tax on corporate profit on either a residence basis or on a source basis. We explore two alternatives, based on the location of consumption, rather than production ? destination-based, as opposed to source-based or residence-based, taxes. We analyse the properties of these taxes, especially with respect to their impact on location decisions and domestic welfare.