Discussion paper

DP3401 Cash Flow Taxes in an Open Economy

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.


Devereux, M and S Bond (2002), ‘DP3401 Cash Flow Taxes in an Open Economy‘, CEPR Discussion Paper No. 3401. CEPR Press, Paris & London. https://cepr.org/publications/dp3401