Quotation Leibrecht, Markus, Onaran, Özlem, Bösch, Valerie. 2010. How does globalization affect the tax burden on labour income, capital income and consumption in different welfare regimes? The case of Western and Eastern EU Member States. SFB International Tax Coordination Discussion Paper Nr. 35.


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Abstract

This paper analyzes the effects of globalization on implicit tax rates (ITRs) on labour income, capital income, and consumption in the EU15 and Central and Eastern European New Member States (CEE NMS). We find a positive effect of globalization on the ITR on labour income in the EU15, but no effect on the ITR on capital income, and a negative effect of globalization on ITR on consumption. In the CEE NMS there is no effect of globalization on any of the three ITRs. We also find differences among the welfare regimes within the EU15. Globalization has a particularly strong effect in the social democratic regime on all ITRs. Globalization has a statistically significant negative effect on the ITR on capital income in the social-democratic and southern regimes, a marginally significant negative effect in the liberal regime, and no significant effect in the conservative regime. Regarding the ITR on consumption, there is a significant negative effect of globalization in the social-democratic, conservative, and liberal regimes. In the case of the ITR on labour income, globalization causes an increase in all four welfare regimes.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title How does globalization affect the tax burden on labour income, capital income and consumption in different welfare regimes? The case of Western and Eastern EU Member States
Title of whole publication SFB International Tax Coordination Discussion Paper Nr. 35
Year 2010

Associations

Projects
F2013: Linking Infrastructure and Taxes as Determinants of Multinational Activity: An Empirical Study of Foreign Direct Investment in Central and Eastern European Countries
F2008 - Tax Coordination and Economic Performance: Government Budget, Distribution, and the Welfare State
People
Leibrecht, Markus (Former researcher)
Onaran, Özlem (Former researcher)
Bösch, Valerie (Former researcher)
Organization
Institute for Public Sector Economics IN (Details)
Institute for Macroeconomics IN (Details)
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