Abstract

http://ssrn.com/abstract=1096836
 
 

Citations



 


 



Will Social Welfare Expenditures Survive Tax Competition?


James R. Hines Jr.


University of Michigan; NBER

2006

Oxford Review of Economic Policy, Vol. 22, Issue 3, pp. 330-348, 2006

Abstract:     
Increasing economic openness creates demands for social welfare programmes designed to cushion the impact of economic changes, but may also encourage governments to reduce tax rates to attract mobile economic resources. Competitive tax reductions could then prevent governments from being able to finance significant welfare spending. Alternatively, economic globalization might improve the ability of governments to afford social welfare programmes-and several considerations point in this direction. First, taxes on internationally mobile activity represent only small fractions of total revenue collections; personal income taxes, value-added taxes, and social insurance contributions finance most social welfare spending. Second, international competition need not reduce taxes, and indeed, over the past 25 years, corporate tax collections have remained high as fractions of GDP and total taxes. Third, the vitality of a country's economy largely determines its level of social spending. To the extent that incomes rise as a result, greater economic openness should strengthen provision of social welfare.

Accepted Paper Series


Not Available For Download

Date posted: February 29, 2008  

Suggested Citation

Hines Jr., James R., Will Social Welfare Expenditures Survive Tax Competition? ( 2006). Oxford Review of Economic Policy, Vol. 22, Issue 3, pp. 330-348, 2006. Available at SSRN: http://ssrn.com/abstract=1096836 or http://dx.doi.org/10.1093/oxrep/grj020

Contact Information

James Rodger Hines (Contact Author)
University of Michigan ( email )
625 South State Street
Ann Arbor, MI 48109-1215
United States
NBER
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 421

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.219 seconds