Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248850 
Year of Publication: 
2021
Series/Report no.: 
ZEW Discussion Papers No. 21-096
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Globalisation and the fast-approaching digitalisation increase capital as well as labour mobility fostering tax competition among countries worldwide. Based on a unique dataset, we analyse the development of effective tax burdens on corporations and highly skilled labour for 26 OECD countries over the last decade. The synthesis of both indicators allows us to identify tax strategies of the countries considered and to further elaborate on the scope of future tax competition against the background of current developments. Overall, we find a declining trend in effective tax burdens on corporate investments, whereas we observe increases in the top statutory tax rates for high-income earners and a rather constant average effective tax burden on labour for a disposable income of EUR 100'000. Current developments like the agreement on a global minimum tax or the transition to a knowledge-based economy can set a new lower bound to tax competition on corporate investments and might shift its focus.
Subjects: 
effective tax rates
tax competition
location attractiveness
corporate location decision
Devereux/Griffith Methodology
Human Resource Tax Analyzer
JEL: 
H21
H25
Document Type: 
Working Paper

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