Working Paper: NBER ID: w4902
Authors: Joel Slemrod
Abstract: This paper explores the normative theory of international taxation by recasting it in parallel with the theory of international trade. It first sets out a definition of 'free trade taxation,' first in the global context and then in the unilateral context. It then evaluates against this standard the existing international tax regime and the U.S. international tax policy, and characterizes which aspects of tax policy are free trade and which are protectionist, differentiating the 'predatory protectionism' of tax havens and the 'ownership protectionism' of tax policies that favor domestically- resident multinational corporations.
Keywords: international taxation; free trade; protectionism
JEL Codes: F2; H2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| free trade taxation (F19) | national income (P44) |
| protectionist tax policies (F38) | trade flows (F10) |
| protectionist tax policies (F38) | national income (P44) |
| unilateral free trade (F10) | national income (P44) |
| tax policies favoring domestically-resident multinational corporations (F23) | competitive positioning of domestic firms (F23) |