NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The X Tax in the World Economy

David F. Bradford

NBER Working Paper No. 10676
Issued in August 2004
NBER Program(s):   ITI   PE

This paper considers the treatment of multinational business in the system known as an X Tax. The focus is on the choice between origin and destination treatments of transborder transactions. The destination-principle approach sidesteps the transferpricing problem. It remains in the origin-principle approach, which, however, presents fewer challenges of monitoring imports, obviates the tourism problem' whereby people can reduce their taxes by consuming in a low-tax jurisdiction and avoids transition effects associated with introduction of the tax and subsequent tax rate changes. The paper suggests special rules for transborder transactions between related parties to deal with the transfer-pricing problem.

download in pdf format
   (232 K)

email paper

This paper is available as PDF (232 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10676

Users who downloaded this paper also downloaded these:
Auerbach and Bradford w8122 Generalized Cash Flow Taxation
Bradford w9843 Addressing the Transfer-Pricing Problem in an Origin-Basis X Tax
Bradford w5290 Consumption Taxes: Some Fundamental Transition Issues
Mankiw, Weinzierl, and Yagan w15071 Optimal Taxation in Theory and Practice
Hanlon and Shevlin w11067 Bank-Tax Conformity for Corporate Income: An Introduction to the Issues
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us