Evaluating Tax Harmonization / James R. Hines Jr..

Format:

Book

Author/Creator:

Hines, James R, Jr.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31900.

NBER working paper series no. w31900

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

Tax harmonization entails a uniform rate that may not suit all governments. Harmonization can advance collective governmental objectives only if the standard deviation of tax rates is less than the average downward effect of tax competition on rates. Since an efficient harmonized tax rate undoes the effect of competition, an efficient rate equals or exceeds the sum of the observed average tax rate and the standard deviation of rates. In 2020, the mean world corporate tax rate was 25.9%, and the standard deviation 4.5%, so if there is an efficient harmonized world tax rate, it must be 30.4% or higher.

Notes:

Print version record

November 2023.