Tax competition is the result of national fiscal policies mutually influencing each other in and environment of high economic integration and affects mobility decisions for labour and capital.
Nowadays, the facets of tax competition are heterogeneous and are not limited to simply adjusting statutory tax rates any more. Especially in recent years, new channels and dynamics of tax competition have been revealed. One example for the dynamics of tax competition is the recent reform of corporate taxation in the US.
The aim of this project is to systematically assess the different types of tax competition and their development over time. Thereby, special emphasis will be put on chances and risks emerging from different types of tax competition. In addition, counter-measures for tax competition of policy-makers will be analysed and the effects on family-run businesses estimated.