Becker, Johannes; Fuest, Clemens - In: National Tax Journal 63 (2010) 2, pp. 269-80
In this comment, we argue that — even in the model used by Hines — full deductibility of costs under the exemption system is incompatible with nationally optimal tax policy. We derive an optimality rule which suggests that cost apportionment rules are efficient. Our findings also imply that...