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The discrepancy between "ideal" and "real world" international tax rules. What drives politicians when making the rules?

Braun, Julia (2012) The discrepancy between "ideal" and "real world" international tax rules. What drives politicians when making the rules? WU International Taxation Research Paper Series, 2012-10. WU Vienna University of Economics and Business, Universität Wien, Vienna.

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Abstract

The current international tax system diverges greatly from a theoretically "optimal" tax system. One reason for this discrepancy may be that politicians strive for other objectives rather than making tax rules that comply with the theoretical concepts of optimal taxation. In this article, I overview the approaches used in the economic and legal literature to explain the motivations of the people making international tax policy and contrast them with observations from the "real world". This article illustrates that the making of international tax policy is affected by many different factors: domestic pressure groups and the structure of the international tax system, along with selfinterested politicians and bureaucrats. Considering the complexity of the conditions under which international tax policy is made, it is not astonishing that international tax law deviates from the principles characterizing ideal taxation. (author's abstract)

Item Type: Paper
Additional Information: Editors: Eva Eberhartinger, Michael Lang, Martin Zagler (Vienna University of Economics and Business), Erich Kirchler (University of Vienna) and Rupert Sausgruber (University of Innsbruck)
Keywords: Optimale Besteuerung / Diskrepanz / Steuersystem / Internationale Finanzpolitik / Realwirtschaft / Politische Entscheidung
Classification Codes: RVK PP 8080 ; JEL F50, F53, H21, H25, H87, K34
Depositing User: ePub Administrator
Date Deposited: 08 Mar 2013 12:20
Last Modified: 12 Oct 2014 06:11
URI: http://epub.wu.ac.at/id/eprint/3816

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