Globalization and Factor Income Taxation / Pierre Bachas, Matthew H. Fisher-Post, Anders Jensen, Gabriel Zucman.

Format:

Book

Author/Creator:

Bachas, Pierre.

Contributor:

National Bureau of Economic Research.

Fisher-Post, Matthew H.

Jensen, Anders.

Zucman, Gabriel.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29819.

NBER working paper series no. w29819

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

Exploiting a new global macro-historical database of effective tax rates, we uncover an intriguing pro-tax-capacity effect of international trade. While effective capital tax rates have fallen in developed countries, they have risen in developing countries since the mid-1990s. Event studies of trade liberalization shocks and instrumental variable regressions show that a significant share of this rise can be explained by trade integration, which increases the share of output produced in large corporations, where capital is easier to tax. In contrast to a widely held view, globalization appears in many countries to have supported the ability of government to tax capital.

Notes:

Print version record

March 2022.