رقابت مالیات بر سرمایه با مصارف دولت اسراف آمیز اجتماعی

Models of international tax competition typically suppose a benevolent government. This paper considers a government with self-interested consumption objectives in the presence of distorting taxes on capital investment, savings and labor income. In such a model, the effects of international tax coordination on the welfare of residents are ambiguous when a residence-based capital tax is not available. In contrast, government use of taxes is inefficient from the viewpoint of residents in the presence of residence-based capital taxation.