TY  - JOUR
AU  - Slemrod,Joel
AU  - Hansen,Carl
AU  - Procter,Roger
TI  - The Seesaw Principle in International Tax Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4867
PY  - 1994
Y2  - September 1994
UR  - http://www.nber.org/papers/w4867
L1  - http://www.nber.org/papers/w4867.pdf
N1  - Author contact info:
Joel Slemrod
University of Michigan Business School
701 Tappan Street
Room R5396
Ann Arbor, MI  48109-1234
Tel: 734/936-3914
Fax: 734-615-4323
E-Mail: jslemrod@umich.edu

Carl Hansen
E-Mail: cbhansen@wi.rr.com
AB  - The standard analysis of the optimal international tax policy of a small country typically assumes that the country either imports or exports capital, but does not do both.  This paper considers the situation in which a small country both exports and imports capital and can alter its tax on one or the other, but not both.  In each case, a 'seesaw' relationship is identified, in which the optimal tax on the income from capital exports (imports) is inversely related to the given tax rate on income from capital imports (exports).  The standard results for optimal taxation of capital exports and imports are shown to be special cases of the more general seesaw principle.
ER  -