This project analyzes the causes and consequences of the "internationalization of taxation." In previous phases of the project we described and explained the emergence and transformation of the three most relevant international tax regimes: the global regime of double tax treaties, the EU tax regime and the OECD regime on harmful tax practices. Our findings demonstrate that these regimes gradually limit the scope of national tax policy: taxes remain national but are increasingly constrained by international rules and tax competition.
In the current phase of the project we focus on the political consequences of international tax regimes: Does the gradual internationalization of tax policy-making bring an internationalization of tax-related political debates in its wake, or do citizens and interest groups rather respond with indifference, adaption or neglect? To answer this question we first explore the distributive effects of international tax regimes (outcome): Does the rise of international tax regimes and international tax competition affect the progressivity of national tax systems, and does it contribute to a shifting of tax burdens between different income groups? We then turn to political reactions to internationalization and focus on three questions in particular: How do citizens perceive and evaluate domestic and international tax regimes and do these perceptions and evaluations change over time (loyalty)? How, and to what extent, do they adjust their tax avoidance and evasion strategies in response to international tax regimes (exit)? And finally, how, if at all, does the internationalization of taxation change cleavage structures and patterns of political mobilization in that policy field (voice and neglect).
Project application 2011-2014 in German
Project application 2007-2010 in German
Project application 2003-2006 in German