Working Paper
Capital Taxation May Survive in Open Economies
Michael Braulke, Giacomo Corneo
CESifo, Munich, 2003
CESifo Working Paper No. 975
CESifo, Munich, 2003
CESifo Working Paper No. 975
![](https://cesifo.org/DocImg/cesifo_wp975.jpg?c=1689237015)
When capital is perfectly mobile across countries and labour is fixed, a source-based tax on capital both reduces and redistributes world income. We show that under plausible circumstances there always exists a country that benefits from introducing such a tax.