The Global Minimum Tax
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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The Global Minimum Tax. / Johannesen, Niels.
I: Journal of Public Economics, Bind 212, 104709, 2022.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - The Global Minimum Tax
AU - Johannesen, Niels
PY - 2022
Y1 - 2022
N2 - This paper studies how the global minimum tax shapes national tax policies and welfare in a formal model of international tax competition with heterogeneous countries. The net welfare effect is generally ambiguous from the perspective of non-havens. On the one hand, the global minimum tax raises their welfare by curbing profit shifting, which boosts government revenue. One the other hand, it lowers their welfare by increasing equilibrium tax rates in havens, which transfers resources from non-haven firms to haven governments. The net welfare effect is unambiguously positive when the global minimum rate is so high that profit shifting ends.
AB - This paper studies how the global minimum tax shapes national tax policies and welfare in a formal model of international tax competition with heterogeneous countries. The net welfare effect is generally ambiguous from the perspective of non-havens. On the one hand, the global minimum tax raises their welfare by curbing profit shifting, which boosts government revenue. One the other hand, it lowers their welfare by increasing equilibrium tax rates in havens, which transfers resources from non-haven firms to haven governments. The net welfare effect is unambiguously positive when the global minimum rate is so high that profit shifting ends.
U2 - 10.1016/j.jpubeco.2022.104709
DO - 10.1016/j.jpubeco.2022.104709
M3 - Journal article
VL - 212
JO - Journal of Public Economics
JF - Journal of Public Economics
SN - 0047-2727
M1 - 104709
ER -
ID: 336939660