Non-Binding Minimum Taxes May Foster Tax Competition
WZB Markets and Politics Working Paper No. SP II 2008-10
11 Pages Posted: 26 Aug 2010
Date Written: March 1, 2008
In a Stackelberg framework of capital income taxation it is shown that imposing a minimum tax rate that is lower than all countries' equilibrium tax rates in the non-cooperative equilibrium may reduce equilibrium tax rates in all countries.
Keywords: corporate income, capital income, taxation, tax competition, minimum tax, tax coordination, Stackelberg
JEL Classification: H87
Suggested Citation: Suggested Citation