A1 Refereed original research article in a scientific journal

Imaginary capital migration and the competitive politics of corporate taxation




AuthorsJaakkola Jussi, Ylönen Matti, Saari Leevi

PublisherRoutledge, Taylor & Francis

Publication year2023

JournalNew Political Economy

Journal acronymNPE

Volume28

Issue1

First page 13

Last page28

eISSN1469-9923

DOIhttps://doi.org/10.1080/13563467.2022.2054967(external)

Web address https://www.tandfonline.com/doi/full/10.1080/13563467.2022.2054967(external)

Self-archived copy’s web addresshttps://research.utu.fi/converis/portal/detail/Publication/174622468(external)


Abstract

International competitiveness has solidified itself as a key policy goal for nation states. The consequent competitive re-design of tax systems has reduced corporate tax rates across borders. To understand the policy-shaping nature of tax competition, we examine how the changing imagery of competitiveness has rationalised lowering the corporate tax rate in three Finnish tax reforms since the 1990s. In attracting mobile capital by inventing tax system disparities, governments increasingly rely on imaginary capital migration. Examining imaginary capital migration demonstrates that governments’ competitive policies of fiscal nationalism greatly overlap with corporate taxpayers’ tax avoidance arrangements, as both practices are largely disembedded from the material dynamics of economy.


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Last updated on 2024-26-11 at 14:57