Blurred Tax Boundaries: The New Economy's Implications for Tax Policy
9 Pages Posted: 24 Aug 2000 Last revised: 2 Dec 2016
Date Written: August 28, 2000
Neubig and Poddar argue that all taxes are under pressure from the new economy's "perfect markets" due to more footloose intangible capital, increasing globalization, reduced transaction costs from e-commerce, increased competition from deregulation, increased financial innovations, and widespread ownership of corporate equity.
Those pressures, they conclude, will have significant implications for future tax policy and administration, not only in the U.S. but also in its major trading partners. If national and subnational tax systems do not adapt quickly to those fundamental economic, technological, institutional, and demographic changes, the implications will be increasing distortions from antiquated tax rules and increasing complexity as the more perfect blurred economy adjusts around the rules.
Note: This abstract published last week with an incorrect email address for the contact author. SSRN regrets the error.
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