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Local income tax competition with progressive taxes and a fiscal equalization scheme

Kuhlmey, Florian. (2017) Local income tax competition with progressive taxes and a fiscal equalization scheme. WWZ Working Papers, 2017 (17).

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Official URL: https://edoc.unibas.ch/61301/

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Abstract

This paper develops a model of local income tax competition with a progressive tax scheme and a built-in fiscal equalization scheme. Both aspects are central to policy makers: The progressivity for equity reasons, and the fiscal equalization to prevent a race to the bottom and to limit the degree of segregation of households according to income. The model is calibrated to the metropolitan area of Zurich (Switzerland), and policy evaluations reveal that a progressive tax scheme as the basis for local tax competition causes strong segregating forces that can only to some extent be compensated by the fiscal equalization scheme.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Umweltökonomie (Krysiak)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Kuhlmey, Florian
Item Type:Working Paper
Publisher:WWZ, University of Basel
Number of Pages:51
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2017/17
Last Modified:07 Mar 2018 11:49
Deposited On:07 Mar 2018 11:49

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