Download full text
(external source)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://hdl.handle.net/10419/41660
Exports for your reference manager
Globalization, tax competition, and the fiscal viability of the welfare state
Globalisierung, Steuerwettbewerb und die fiskalische Überlebensfähigkeit des Wohlfahrtsstaats
[working paper]
Corporate Editor
Max-Planck-Institut für Gesellschaftsforschung
Abstract "Does globalization undermine the fiscal basis of the welfare state? The conventional wisdom believes so: open borders
cause tax competition, which in turn leads to a race to the bottom in capital taxation. However, the data show that
revenues from capital taxation are fairly stable in OECD countr... view more
"Does globalization undermine the fiscal basis of the welfare state? The conventional wisdom believes so: open borders
cause tax competition, which in turn leads to a race to the bottom in capital taxation. However, the data show that
revenues from capital taxation are fairly stable in OECD countries. Some observers conclude from this that globalization
does not pose much of a challenge to the welfare state. This conclusion is unwarranted because it overlooks that tax
competition was not the only challenge facing welfare states during the 1980s and 1990s. There was also slow growth,
rampant unemployment, and high levels of precommitted spending. These problems exerted countervailing pressures that
prevented a race to the bottom in taxation. Yet, this does not mean that national autonomy has not been diminished. The
welfare state is trapped in between external pressures to reduce the tax burden on capital and internal pressures to
maintain revenue levels and relieve the tax burden on labor." [author's abstract]... view less
Keywords
globalization; taxation; corporate tax; trade tax; welfare state; OECD; withholding tax; value added tax; environment tax; OECD member country
Classification
Political System, Constitution, Government
National Economy
Public Finance
Method
empirical; quantitative empirical
Document language
English
Publication Year
2001
City
Köln
Page/Pages
27 p.
Series
MPIfG Working Paper, 1
Handle
https://hdl.handle.net/10419/41660
ISSN
1864-4333
Status
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications
Data providerThis metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne