Abstract

http://ssrn.com/abstract=2328479
 
 

Citations (1)



 


 



The Internet as a Tax Haven? The Effect of the Internet on Tax Competition


David R. Agrawal


University of Georgia - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

February 1, 2015


Abstract:     
High Internet penetration puts downward pressure on local sales tax rates when online sales are tax-free as jurisdictions seek to reduce revenue-leakages, but places upward pressure on tax rates when online sales are taxable because the Internet helps enforce sales tax collection. I use panel data on local sales tax rates for all states to show that the effect of Internet penetration is negative. As predicted by theory, the negative effect on sales tax rates is stronger for municipalities on the low-tax side of state borders that were not constrained by revenue losses from cross-border shopping in the pre-Internet era.

Number of Pages in PDF File: 77

Keywords: Commodity Taxation, Fiscal Competition, e-Commerce, Tax Havens, Tax Evasion

JEL Classification: H25, H71, H73, L81, R50


Download This Paper

Date posted: September 21, 2013 ; Last revised: February 25, 2015

Suggested Citation

Agrawal, David R., The Internet as a Tax Haven? The Effect of the Internet on Tax Competition (February 1, 2015). Available at SSRN: http://ssrn.com/abstract=2328479 or http://dx.doi.org/10.2139/ssrn.2328479

Contact Information

David Robert Agrawal (Contact Author)
University of Georgia - Department of Economics ( email )
Brooks Hall
310 Herty Drive
Athens, GA 30602-6269
United States
HOME PAGE: http://people.terry.uga.edu/dagrawal/
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany

Feedback to SSRN


Paper statistics
Abstract Views: 1,365
Downloads: 355
Download Rank: 50,451
Citations:  1

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.312 seconds