Acceso usuarios
Alexander Klemm, Ruud A. de Mooij, Shafik Hebous
This article examines the future of corporate income taxation amid globalization, digitalization, and the rise of artificial intelligence. It highlights the challenges of profit shifting, tax competition, and domestic distortions, which jointly push the system in the direction of a neutral destination-based cash-flow tax. Such a tax could be complemented by a personal tax on either all capital income or the normal return to capital. This combined system has the potential to enhance equity and revenue, while addressing current inefficiencies. International cooperation would smooth the transition toward such a system, yet even in its absence global forces can drive tax systems in this direction
