This paper examines the future of capital income taxation in a world of capital mobility. It first explores the motivation for personal and corporate income taxation in an open economy and argues that policymakers should view these taxes as having quite different impacts on the economy. The...

This text surveys the literature on the implications of international capital mobility for national tax policies. Our main issue for consideration in this survey is whether taxation of income, specifically capital income will survive, how border crossing investment is taxed relative to domestic...

Should provincial business taxes be deductible under a federal profit tax? We show that the "optimal deductible," which neutralizes the vertical fiscal externality between the federal and provincial government, is the change in the federal tax base per dollar of tax revenue collected by the...