01996cas a2200241 a 4500 AALejournalIMF000905 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451959710 1018-5941 BD-DhAAL BD-DhAAL Kletzer, Kenneth. On Noncooperative Capital Income Taxation in Open Economies / Kenneth Kletzer. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper discusses the strategic use of capital income taxation and lump-sum fiscal policies for gaining national advantage in an integrated world capital market. Each fiscal authority seeks to maximize a social welfare function defined over the utilities of home country residents incorporating national redistributing objectives. A national optimum policy is to impose a non-discriminatory source-based capital income tax or subsidy along with an optimal lump-sum tax and transfer plan. Residence-based capital income taxes do not augment the set of lump-sum fiscal instruments, although both policies can be used to influence the world interest rate to national advantage, redistributing welfare internationally. When unrestricted lump-sum fiscal policies are unavailable, source-based capital income taxes may be needed to achieve distributional objectives, so that departures from global production efficiency can arise in a cooperative equilibrium. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1990/071 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/071/001.1990.issue-071-en.xml IMF e-Library