In this article, we introduce progressive formulary apportionment and urge that it be implemented within OECD’s Pillar One by establishing a new taxing right, which we call “Amount D.” Unlike traditional formulary apportionment, in which the rights to tax businesses are allocated on the...

We show in the world trade data that countries with more progressive personal income tax system are less likely to have comparative advantage in industries that employ a greater share of high-income occupations, such as high-tech industries and professional services. Moreover, when countries...