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Title: |
International Taxation When Domestic Distributional Policy is
Constrained |
| Author: |
Yang, Yong |
| Author
Affiliation: |
U MI |
| Source: |
International Economic Journal, Spring 1998, v. 12, no. 1, pp. 75-93 |
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Publication Date: |
Spring 1998 |
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Abstract: |
International capital trade benefits a
nation as a whole but the gains from trade are unevenly distributed
among owners of various factors. The traditional view in international
taxation is that a small economy should not tax capital trade. However,
this view is valid only if the government is free to choose domestic
distributional policy. This paper investigates what constitutes optimal
international tax policy when domestic distributional policy is
constrained at a minimum rate. The finding is that taxing capital trade
could be welfare-improving. |
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