TY  - JOUR
AU  - Bradford,David F.
TI  - The X Tax in the World Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10676
PY  - 2004
Y2  - August 2004
UR  - http://www.nber.org/papers/w10676
L1  - http://www.nber.org/papers/w10676.pdf
N1  - Author contact info:
David F. Bradford
Woodrow Wilson School
Princeton University
Princeton, NJ 08544-1013
Tel: 609/258-1856
Fax: 609/258-2809
E-Mail: BRADFORD@PRINCETON.EDU
AB  - 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.
ER  -