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Double income taxation as a response to tax competition in the EU

  • Taxation
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Intereconomics

Abstract

The following article discusses the undesired consequences of tax competition and presents a proposal for tax reform derived from a very general normative basis: the idea of exchange between governments and taxpayers and the principle of equality. The aim is to tie tax competition to jurisdictional competition in general and thereby maintain tax competition as a productive procedure instead of abolishing it by harmonising tax systems. Surprisingly, systematic double taxation of income, as factor income following the source principle and as citizens' income following the residence principle, is one element of the solution. The other is unitary taxation of business income.

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  30. Others argue that progressive taxation can be defended on the grounds of benefit taxation (e.g. K. Wicksell: Finanztheoretische Untersuchungen nebst Darstellungen und Kritik des Steuerwesens Schwedens, Jena 1896, Gustav Fischer, p. 113.

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  1. Walter Eucken Institut, Freiburg, Germany

    Lüder Gerken, Jörg Märkt & Gerhard Schick

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Gerken, L., Märkt, J. & Schick, G. Double income taxation as a response to tax competition in the EU. Intereconomics 36, 244–254 (2001). https://doi.org/10.1007/BF02928978

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