DOCSLIB.ORG

More Than 50 Years of Trade Rule Discrimination on Taxation: How Trade with China Is Affected

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
More Than 50 Years of Trade Rule Discrimination on Taxation: How Trade with China Is Affected MORE THAN 50 YEARS OF TRADE RULE DISCRIMINATION ON TAXATION: HOW TRADE WITH CHINA IS AFFECTED Trade Lawyers Advisory Group Terence P. Stewart, Esq. Eric P. Salonen, Esq. Patrick J. McDonough, Esq. Stewart and Stewart August 2007 Copyright © 2007 by The Trade Lawyers Advisory Group LLC This project is funded by a grant from the U.S. Small Business Administration (SBA). SBA’s funding should not be construed as an endorsement of any products, opinions or services. All SBA-funded projects are extended to the public on a nondiscriminatory basis. MORE THAN 50 YEARS OF TRADE RULE DISCRIMINATION ON TAXATION: HOW TRADE WITH CHINA IS AFFECTED TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY.............................................................................................. iv INTRODUCTION ................................................................................................................ 1 I. U.S. EXPORTERS AND PRODUCERS ARE COMPETITIVELY DISADVANTAGED BY THE DIFFERENTIAL TREATMENT OF DIRECT AND INDIRECT TAXES IN INTERNATIONAL TRADE .............................................. 2 II. HISTORICAL BACKGROUND TO THE DIFFERENTIAL TREATMENT OF INDIRECT AND DIRECT TAXES IN INTERNATIONAL TRADE WITH RESPECT TO BORDER ADJUSTABILITY................................................................. 21 A. Border Adjustability of Taxes ................................................................. 21 B. 18th and 19th Century Examples of the Application of Border Tax Adjustments .......................................................................... 23 C. 1946-1948 – Creation of the General Agreement on Tariffs and Trade (GATT) ...................................................................................... 26 D. 1955 – Review of the GATT Adds Export Subsidy Provisions to GATT Article XVI.............................................................. 30 E. 1960 – GATT Working Party on Subsidies – Illustrative List of Export Subsidies ........................................................................... 31 F. Why the U.S. Agreed to the Existing GATT Rules on Border Tax Adjustments .......................................................................... 33 G. 1963-1967 – Kennedy Round and Growing Concern Regarding Non-Tariff Barriers (including border tax adjustments)................................................................................................ 37 H. 1967-68 – U.S. Balance of Payments Problem Grows; President Johnson Issues Statement on Balance-of- Payments Problem on January 1, 1968 ................................................. 44 I. 1968-1970 – GATT Working Party on Border Tax Adjustments................................................................................................. 58 i MORE THAN 50 YEARS OF TRADE RULE DISCRIMINATION ON TAXATION: HOW TRADE WITH CHINA IS AFFECTED TABLE OF CONTENTS PAGE J. 1969-1971 – Nixon Administration’s Concerns Regarding Border Tax Adjustments .......................................................................... 75 K. 1970-1972 – Williams Commission Report............................................. 85 L. 1968-73 – Reflections of U.S. Business Concerns Regarding the Trade Disadvantages Resulting from GATT Rules on Border Tax Adjustments .......................................................................... 88 M. Trade Act of 1974 – For the Tokyo Round, Congress Identifies Reform of Border Tax Adjustment Rules as a U.S. Negotiating Objective....................................................................... 96 N. Omnibus Trade and Competitiveness Act of 1988 – For the Uruguay Round, Congress Again Identifies Revision of Border Tax Adjustment Rules as a U.S. Negotiating Objective ...................................................................................................... 102 O. Trade Act of 2002 – For the Doha Round, Congress Once More Identifies Reform of Border Tax Adjustment Rules as a U.S. Negotiating Objective............................................................... 105 P. Multiple U.S. Efforts to Partially Compensate for the Inequity of GATT Border Tax Rules Have Been Thwarted by GATT and WTO Dispute Settlement Decisions ............................. 108 III. LEGISLATIVE EFFORTS TO REFORM THE U.S. TAX SYSTEM TO ADDRESS THE DISCRIMINATORY TRADE EFFECTS OF THE DIFFERENTIAL TREATMENT OF INDIRECT AND DIRECT TAXES HAVE NOT BEEN SUCCESSFUL ........................................................................................ 113 IV. CHINA’S TAX SYSTEM AND ITS USE OF DIRECT AND INDIRECT TAXES ............. 133 A. Background ................................................................................................. 133 B. Recent Amendments to the Chinese VAT System .............................. 136 C. Concerns Regarding Chinese Manipulation of the VAT................... 142 V. IMPACT OF THE CHINESE VAT SYSTEM ON U.S.-CHINA TRADE FLOWS...................................................................................................................... 143 ii MORE THAN 50 YEARS OF TRADE RULE DISCRIMINATION ON TAXATION: HOW TRADE WITH CHINA IS AFFECTED TABLE OF CONTENTS PAGE VI. DISPUTES AND ISSUES THAT HAVE ARISEN CONCERNING CHINA’S APPLICATION OF VALUE-ADDED AND OTHER INDIRECT TAXES ON SELECTED PRODUCTS............................................................................................ 146 A. VAT on Semiconductors ........................................................................... 148 B. VAT Treatment of Certain Fertilizers................................................... 153 C. Consumption Taxes on Various Products............................................ 155 D. Border Trade VAT Policy ......................................................................... 157 E. Assessment of VAT on Antidumping Duty ........................................... 160 F. VAT Refund on Imported Capital Equipment Used for Production of Products for Export........................................................ 161 G. VAT Rebate on Purchases of Domestic Machinery and Equipment by FIEs .................................................................................... 162 H. VAT Rebate for Domestic Equipment Purchases by FIEs Engaged in Particular Projects .............................................................. 163 I. Agricultural VAT Policies ........................................................................ 164 VII. POTENTIAL UNILATERAL, BILATERAL AND MULTILATERAL ACTIONS THAT COULD BE TAKEN TO ELIMINATE BORDER TAX DISCRIMINATION OF U.S. EXPORTERS AND PRODUCERS................................... 166 iii 50 Years of Trade Rule Discrimination on Taxation: How Trade with China is Affected EXECUTIVE SUMMARY For more than 50 years, U.S. manufacturers and exporters have operated under GATT/WTO trade rules which distort trade through discriminatory treatment of different taxation systems. The global trading rules permit the imposition of certain forms of taxes on imports and the removal of certain forms of taxes on exports. The U.S. is the only major trading nation which has not modified its taxation system over time, with the result that U.S. exports face double taxation while U.S. manufacturers, agricultural producers and service providers compete in the U.S. with imports that have been relieved of a significant part of the taxation obligations of the exporting countries. Over this time, U.S. presidents, cabinet members, Congress, business leaders, and economists have sought to correct the discriminatory treatment of taxes which peculiarly distort trade to the disadvantage of the United States. The efforts to date, including in the current Doha Round, have failed to solve the problem. This is a problem not just with historical trading partners such as the EU, but also with new trading powers like the People’s Republic of China. Under GATT/WTO rules, indirect taxes, such as value-added taxes (VAT), excise taxes, and other types of consumption taxes, are treated more favorably than direct taxes, such as income taxes. In application, the differential treatment of direct/indirect tax systems means that countries that have indirect tax systems are permitted (1) to impose indirect taxes, such as the VAT, on incoming imports, and (2) are permitted to provide a rebate of the VAT on outgoing exports. However, the same treatment is not accorded to countries, such as the United States, that rely primarily on direct tax systems. In other words, under the GATT/WTO rules, indirect taxes are adjustable at the border, direct taxes are not. iv 50 Years of Trade Rule Discrimination on Taxation: How Trade with China is Affected EXECUTIVE SUMMARY The consequence of the GATT/WTO disparate treatment of direct and indirect taxes is that U.S. producers and exporters suffer a competitive disadvantage due to double taxation -- U.S. exporters must pay both U.S. taxes, which are not rebated, and foreign VAT; U.S. producers must pay U.S. taxes and compete with imports that do not pay U.S. taxes and which have received rebates of VAT and other indirect taxes. Economists have found that the disparate border adjustability of direct and indirect taxes produces significant economic distortions. Currently, 137 nations have some form of VAT. Based on international VAT rates and U.S. import and export data, it can be estimated that the total VAT disadvantage to U.S. exporters and producers in 2006 was more than $300 billion. China is one of the 137 countries that imposes a VAT and allows rebates of VAT on exports. Given the size of U.S. trade
Load more

Recommended publications
  • Analysis of Tax Developments Worldwide
    www.pwc.com/its International Tax News Edition 78 August 2019 Welcome Keeping up with the constant flow of Featured articles international tax developments worldwide can be a real challenge for multinational companies. International Tax News is a monthly publication that offers updates and analysis on developments taking place around the world, authored by specialists in PwC’s global international tax network. We hope that you will find this publication helpful, and look forward to your comments. Bernard Moens Global Leader International Tax Services Network T: +1 703 362 7644 E: [email protected] In this issue Legislation Administrative Judicial EU/OECD Treaties Legislation Argentina Argentina approves tax regime for Among others, the following tax benefits knowledge-based activities apply to the extent that taxpayers comply with certain requirements: Law No. 27,506, published on June • 15% reduced corporate income tax rate 10, enacted a new regime promoting applicable to fiscal years beginning on or knowledge-based activities. The regime’s after January 1, 2020 main tax benefits include a reduced • executing tax stability agreements with federal corporate income tax rate of 15% and a tax authorities providing that the federal tax tax stability agreement. The new regime burden on income from Promoted Activities cannot increase until December 31, 2029 replaces the existing regime, which was • ability to claim withholding taxes, VAT limited to the software industry, and withholding exemptions, and reduction in will be effective from January 1, 2020 social security contributions through December 31, 2029. Multinational entities engaged in Promoted Activities should revisit their Argentinian operations in order to The new regime aims to encourage the creation, benefit from the new regime.
    [Show full text]
  • Engagement Guidance on Corporate Tax Responsibility Why and How to Engage with Your Investee Companies
    ENGAGEMENT GUIDANCE ON CORPORATE TAX RESPONSIBILITY WHY AND HOW TO ENGAGE WITH YOUR INVESTEE COMPANIES An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact THE SIX PRINCIPLES We will incorporate ESG issues into investment analysis and 1 decision-making processes. We will be active owners and incorporate ESG issues into our 2 ownership policies and practices. We will seek appropriate disclosure on ESG issues by 3 the entities in which we invest. We will promote acceptance and implementation of the Principles 4 within the investment industry. We will work together to enhance our effectiveness in 5 implementing the Principles. We will each report on our activities and progress towards 6 implementing the Principles. CREDITS & ACKNOWLEDGEMENTS Authors: Athanasia Karananou and Anastasia Guha, PRI Editor: Mark Kolmar, PRI Design: Alessandro Boaretto, PRI The PRI is grateful to the investor taskforce on corporate tax responsibility for their contributions to the guidance: ■ Harriet Parker, Investment Analyst, Alliance Trust Investments ■ Steven Bryce, Investment Analyst, Arisaig Partners (Asia) Pte Ltd ■ Francois Meloche, Extra Financial Risks Manager, Bâtirente ■ Adam Kanzer, Managing Director, Domini Social Investments LLC ■ Pauline Lejay, SRI Officer, ERAFP ■ Meryam Omi, Head of Sustainability, Legal & General Investment Management ■ Robert Wilson, Research Analyst, MFS Investment Management ■ Michelle de Cordova, Director, Corporate Engagement & Public Policy, NEI Investments ■ Rosa van den Beemt, ESG Analyst, NEI Investments ■ Kate Elliot, Ethical Researcher, Rathbone Brothers Plc ■ Matthias Müller, Senior SI Analyst, RobecoSAM ■ Rosl Veltmeijer, Head of Research, Triodos Investment Management We would like to warmly thank Sol Picciotto, Emeritus Professor, Lancaster University and Coordinator, BEPS Monitoring Group, and Katherine Ng, PRI, for their contribution to the guidance.
    [Show full text]
  • Chapter 5 Foreign Tax Credit P.302 Structural Tax Options for an Outbound U.S
    Chapter 5 Foreign Tax Credit p.302 Structural tax options for an outbound U.S. enterprise in (1) foreign destination country and (2) any conduit country: 1) Branch (e.g., a disregarded entity) - current U.S. income taxation on profits & loss deduction availability in the U.S. 2) Foreign corporate subsidiary - income tax deferral of U.S. income tax & no possible U.S. loss utilization Is the entity decision controlled by (1) tax planning or (2) non-tax business considerations? 4/9/2013 (c) William P. Streng 1 Mitigating Possible Double National Level Taxation Possible double taxation exposure exists (1) since the U.S. income tax is imposed on a worldwide basis & (2) assuming foreign country income tax. Options for unilateral relief (as provided by U.S.): 1) a tax deduction for the foreign tax paid (not completely eliminating double taxation) 2) a (limited) credit for the foreign tax paid (primarily used by U.S.); limited to offsetting U.S. tax on taxpayer’s foreign income. 3) exemption under a territorial system (only 4/9/2013source country taxation)(c) William P. Strengand not in U.S. 2 Bilateral (i.e., Income Tax Treaty) Relief p.306 Double tax relief accomplished under a U.S. bilateral income tax treaty. See U.S. Model, Article 23 (2006). - possible shifting of the primary income tax liability from source location to residence jurisdiction. - but, a U.S. income tax treaty does include a “savings clause” - enabling the continuing worldwide tax jurisdiction of U.S. citizens, residents or corporations. 4/9/2013 (c) William P.
    [Show full text]
  • Congressional Record—House H2113
    March 19, 2003 CONGRESSIONAL RECORD — HOUSE H2113 a Support Our Troops rally or a reserv- government. And one can just project, through the ceiling. So it is obvious ist center and say, ‘‘Congressman, I if we continue to spend two and three that sooner or later, and I hope sooner will take my $90,000 tax cut now, and I and sometimes four times the rate of for the sake of our children and our don’t care if veterans have to stand in inflation, then government takes over; grandchildren, that we have to bring longer lines, have shortages of beds or and instead of empowering people in our spending into line so that this can’t get into VA hospitals tomorrow.’’ the United States, instead of empow- curve does not continue to keep going We all want to engage in shared sac- ering businesses to encourage them to up and up and up and soak up more and rifice. We are at a critical time in our expand and develop and offer better more of our gross domestic product. Nation’s history. Our first obligation and more jobs, government has been at has to be to our seniors and those the feeding trough to use more of those Now, I would like to for a few mo- fighting for our freedom in Iraq and dollars by increasing taxes across the ments turn our attention to another other dangerous places in the world. country. curve, another set of curves, and these We cannot cut their beds, their budg- How do we deal with a situation curves are just some detail-building on ets; we cannot balance tax cuts on where we have made our taxes so pro- the curve that the gentleman showed their backs.
    [Show full text]
  • Fixing the Constitutional Absurdity of the Apportionment of Direct Tax Calvin H
    University of Minnesota Law School Scholarship Repository Constitutional Commentary 2004 Fixing the Constitutional Absurdity of the Apportionment of Direct Tax Calvin H. Johnson Follow this and additional works at: https://scholarship.law.umn.edu/concomm Part of the Law Commons Recommended Citation Johnson, Calvin H., "Fixing the Constitutional Absurdity of the Apportionment of Direct Tax" (2004). Constitutional Commentary. 103. https://scholarship.law.umn.edu/concomm/103 This Article is brought to you for free and open access by the University of Minnesota Law School. It has been accepted for inclusion in Constitutional Commentary collection by an authorized administrator of the Scholarship Repository. For more information, please contact [email protected]. Articles FIXING THE CONSTITUTIONAL ABSURDITY OF THE APPORTIONMENT OF DIRECT TAX Calvin H. Johnson* The Constitution requires that direct taxes be apportioned among the states according to population. 1 Before the abolition * Professor Law, University of Texas. A table of short form citations to fre- quently cited documentary sources is found in the Appendix. 1. The Constitution of the United States provides: Representatives and direct Taxes shall be apportioned among the several States ... according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, (but including] three­ fifths of all other Persons. U.S. CONST. art. I, § 2, cl. 3. The three-fifths of "all other Persons" referred to slaves, but the Thirteenth Amendment abolished slavery. See also U.S. CONST. art. 1, § 9, cl. 4 (providing that "[n]o Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before di­ rected to be taken").
    [Show full text]
  • With Indirect Tax News
    InTouch with indirect tax news Caribbean Region – Alert pwc InTouch with indirect tax news Caribbean Region Alert In this issue: PricewaterhouseCoopers Caribbean Region is pleased I Antigua & Barbuda – Budgetary proposals legislated ............................3 to present the August 2010 I Aruba – BBO rate reduced......................................................................5 issue of InTouch, a bulletin I Barbados – Reforms to Barbados VAT ...................................................7 I Curaçao, Bonaire, St. Maarten, Saba, St. Eustatius...............................9 designed to keep our clients I Dominica ...............................................................................................10 up-to-date with regional I Grenada – VAT in Grenada effective February 1, 2010 .........................11 indirect taxation. I Jamaica – Increase in rate of GCT.......................................................12 I St. Kitts and Nevis – VAT proposed implementation ...........................14 I St. Lucia – Proposed introduction of VAT delayed...............................15 I Trinidad & Tobago ................................................................................16 I Contacts................................................................................................17 2 pwc Antigua & Barbuda Updates and developments An overview Rates 2009 saw the rate of Antigua and Barbuda Sales Antigua and Barbuda Sales Tax (“ABST”) is the The following rates of tax are applicable under the Tax (“ABST”) applicable
    [Show full text]
  • Financial Transaction Taxes
    FINANCIAL MM TRANSACTION TAXES: A tax on investors, taxpayers, and consumers Center for Capital Markets Competitiveness 1 FINANCIAL TRANSACTION TAXES: A tax on investors, taxpayers, and consumers James J. Angel, Ph.D., CFA Associate Professor of Finance Georgetown University [email protected] McDonough School of Business Hariri Building Washington, DC 20057 202-687-3765 Twitter: @GUFinProf The author gratefully acknowledges financial support for this project from the U.S. Chamber of Commerce. All opinions are those of the author and do not necessarily reflect those of the Chamber or Georgetown University. 2 Financial Transaction Taxes: A tax on investors, taxpayers, and consumers FINANCIAL TRANSACTIN TAES: Table of Contents A tax on investors, taxpayers, and Executive Summary .........................................................................................4 consumers Introduction .....................................................................................................6 The direct tax burden .......................................................................................7 The indirect tax burden ....................................................................................8 The derivatives market and risk management .............................................. 14 Economic impact of an FTT ............................................................................17 The U.S. experience ..................................................................................... 23 International experience
    [Show full text]
  • International Tax Cooperation and Capital Mobility
    CEPAL CEPALREVIEW REVIEW 77 • AUGUST 77 2002 65 International tax cooperation and capital mobility Valpy FitzGerald University of Oxford The international mobility of capital and the geographical edmond.fitzgerald @st-antonys.oxford.ac.uk dispersion of firms have clear advantages for the growth and modernization of Latin America and the Caribbean, but they also pose great challenges. Modern principles of capital taxation for open developing economies indicate the need to find the correct balance between the encouragement of private investment and the financing of social infrastructure, both of which are necessary for sustainable growth. This balance can be sub-optimal when countries compete for foreign investment by granting tax incentives or applying conflicting principles in determining the tax base. The fiscal authorities of the region could obtain a more equitable share of capital tax revenue, without depressing investment and growth, through more effective regional tax rules, double taxation treaties, information sharing and treatment of offshore financial centres along the lines already promoted for OECD members. INTERNATIONAL TAX COOPERATIONAUGUST AND CAPITAL 2002 MOBILITY • VALPY FITZGERALD 66 CEPAL REVIEW 77 • AUGUST 2002 I Introduction Globalization involves increasing freedom of capital for developing as well as developed countries. Latin movement: both for firms from industrialized countries America and the Caribbean have been at the forefront investing in developing countries, and for financial asset of the liberalization
    [Show full text]
  • FINANCE Offshore Finance.Pdf
    This page intentionally left blank OFFSHORE FINANCE It is estimated that up to 60 per cent of the world’s money may be located oVshore, where half of all financial transactions are said to take place. Meanwhile, there is a perception that secrecy about oVshore is encouraged to obfuscate tax evasion and money laundering. Depending upon the criteria used to identify them, there are between forty and eighty oVshore finance centres spread around the world. The tax rules that apply in these jurisdictions are determined by the jurisdictions themselves and often are more benign than comparative rules that apply in the larger financial centres globally. This gives rise to potential for the development of tax mitigation strategies. McCann provides a detailed analysis of the global oVshore environment, outlining the extent of the information available and how that information might be used in assessing the quality of individual jurisdictions, as well as examining whether some of the perceptions about ‘OVshore’ are valid. He analyses the ongoing work of what have become known as the ‘standard setters’ – including the Financial Stability Forum, the Financial Action Task Force, the International Monetary Fund, the World Bank and the Organization for Economic Co-operation and Development. The book also oVers some suggestions as to what the future might hold for oVshore finance. HILTON Mc CANN was the Acting Chief Executive of the Financial Services Commission, Mauritius. He has held senior positions in the respective regulatory authorities in the Isle of Man, Malta and Mauritius. Having trained as a banker, he began his regulatory career supervising banks in the Isle of Man.
    [Show full text]
  • Line Item Veto and the Tax Legislative Process: a Futile Effort at Deficit Reduction, but a Step Toward Tax Integrity Gordon T
    Hastings Law Journal Volume 49 | Issue 1 Article 1 1-1997 Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity Gordon T. Butler Follow this and additional works at: https://repository.uchastings.edu/hastings_law_journal Part of the Law Commons Recommended Citation Gordon T. Butler, Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity, 49 Hastings L.J. 1 (1997). Available at: https://repository.uchastings.edu/hastings_law_journal/vol49/iss1/1 This Article is brought to you for free and open access by the Law Journals at UC Hastings Scholarship Repository. It has been accepted for inclusion in Hastings Law Journal by an authorized editor of UC Hastings Scholarship Repository. For more information, please contact [email protected]. The Line Item Veto and the Tax Legislative Process: A Futile Effort at Deficit Reduction, But a Step Toward Tax Integrity by GORDON T. BUTLER* Table of Contents Introduction ...................................................................... 2 I. The Problem of the Deficit and the Budget Process ............... 4 II. The Line Item Veto ...................................................... 21 A. 1995 Congressional Proposals ................................. 21 (1) House Bill 2 and "Enhanced Rescission" ................ 22 (2) Senate Bill 4 and "Separate Enrollment". ............... 24 B. The Line Item Veto of 1996 ...................................... 26 (1) The Act ....................................................... 26 (2) Constitutionality of the Line Item Veto .................. 31 (a) Separate Enrollment Form ............................... 41 (b) Enhanced Rescission Form ............................ 43 (3) Comparison with State Item Veto Authority ............... 52 (4) Critique of the Line Item Veto Act of 1996 ............. 56 m. Are "Tax Expenditures" Expenditures? .........
    [Show full text]
  • Recycling Ecotaxes Towards Lower Labour Taxes
    Implementing a Double Dividend: Recycling Ecotaxes Towards Lower Labour Taxes Antonio Manresa ([email protected]) Departament de Teoria Econòmica and CREB Universitat de Barcelona 08034-Barcelona, Spain Ferran Sancho ([email protected]) Departament d'Economia Universitat Autònoma de Barcelona 08193-Bellaterra, Spain History: Fist draft April 2002 Revised draft August 2002, October 2002 __________________________________________________________________________ This work has been possible thanks to the financial support of the Regidoria de Medi Ambient de l'Ajuntament de Barcelona. Institutional support from research grants SEC2000-0796 and SGR2001-0029 (first author) and SEC2000-0390 and SGR2001-0164 (second author) are also gratefully acknowledged. Stated opinions are those of the authors and therefore do not reflect the viewpoint of the supporting institutions. Abstract In this paper we follow the tradition of applied general equilibrium modelling of the Walrasian static variety to study the empirical viability of a double dividend (green, welfare, and employment) in the Spanish economy. We consider a counterfactual scenario in which an ecotax is levied on the intermediate and final use of energy goods. Under a revenue neutral assumption, we evaluate the real income and employment impact of lowering payroll taxes. To appraise to what extent the model structure and behavioural assumptions may influence the results, we perform simulations under a range of alternative model and policy scenarios. We conclude that a double dividend –better environmental quality, as measured by reduced CO2 emissions, and improved levels of employment– may be an achievable goal of economic policy. Keywords: double dividend, tax recycling, ecotaxes. JEL code: H21, H22, C68 - 2 - 1. Introduction One of the most controversial topics in environmental public economics is the viability of a double dividend ensuing a fiscal reform.
    [Show full text]
  • Potential Retaliation Against the EU Digital Services Tax (DST)
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Lee-Makiyama, Hosuk Research Report The cost of fiscal unilateralism: Potential retaliation against the EU Digital Services Tax (DST) ECIPE Occasional Paper, No. 05/2018 Provided in Cooperation with: European Centre for International Political Economy (ECIPE), Brussels Suggested Citation: Lee-Makiyama, Hosuk (2018) : The cost of fiscal unilateralism: Potential retaliation against the EU Digital Services Tax (DST), ECIPE Occasional Paper, No. 05/2018, European Centre for International Political Economy (ECIPE), Brussels This Version is available at: http://hdl.handle.net/10419/202461 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu ECIPE OCCASIONAL PAPER • 05/2018 The Cost of Fiscal Unilateralism: Potential Retaliation Against the EU Digital Services Tax (DST) By Hosuk Lee-Makiyama Director of ECIPE The author gratefully acknowledges the able research assistance of Cristina Rujan ecipe occasional paper — no.
    [Show full text]