Migration, Taxation, and Inequality

International migration is intimately intertwined with issues of taxation, inequality and public welfare benefits, both in home and destination countries. In home countries the emigration of workers, especially high-skilled workers, is often percei...

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Main Authors: Moreno-Dodson, Blanca, Mohapatra, Sanket, Ratha, Dilip
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2012/05/16252940/migration-taxation-inequality
http://hdl.handle.net/10986/10038
id okr-10986-10038
recordtype oai_dc
spelling okr-10986-100382021-04-23T14:02:48Z Migration, Taxation, and Inequality Moreno-Dodson, Blanca Mohapatra, Sanket Ratha, Dilip BANK POLICY BANK TRANSACTIONS BENEFITS OF MIGRATION BONDS BRAIN DRAIN BUSINESS ENVIRONMENT CAPITAL FLOWS CONSUMER GOODS CONSUMPTION TAXES CONTRIBUTION OF REMITTANCES DEPOSITS DESTINATION COUNTRY DEVELOPING COUNTRIES DEVELOPING COUNTRY DIASPORA DOMESTIC INCOME DOUBLE TAXATION EMIGRATION EMPLOYMENT EXCHANGE RATE EXCHANGE RATES FEDERAL GOVERNMENTS FINANCIAL SERVICES FISCAL BURDEN FISCAL CONSOLIDATION FOREIGN CURRENCY GLOBAL ECONOMIC PROSPECTS GOVERNMENT BUDGET GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HUMAN CAPITAL HUMAN DEVELOPMENT IMPACT OF MIGRATION IMPLICIT TAX INCOME INCOME GROUPS INCOME INEQUALITY INCOME TAX INCOME TAXES INCOMES INFORMAL CHANNELS INNOVATIVE FINANCING INSURANCE INTERNAL REVENUE INTERNATIONAL MIGRATION INTERNATIONAL MOBILITY INTERNATIONAL TRADE INVESTMENT CLIMATE JURISDICTIONS LABOR MARKET LABOUR MIGRATION LOW-INCOME COUNTRIES MACROECONOMIC STABILITY MARGINAL TAX RATES MATCHING GRANTS MATURITY MIDDLE-INCOME COUNTRIES MIGRANT WORKERS MIGRANTS MIGRATION POLICY MONEY TRANSFER MONEY TRANSFER SERVICES OPTIMAL TAXATION PENSIONS PRODUCTIVITY PUBLIC FINANCE PUBLIC FINANCES PUBLIC SERVICES RECIPIENT COUNTRIES REMITTANCE REMITTANCE FLOWS REMITTANCE INFLOWS REMITTANCE RECIPIENTS REMITTANCE TRANSFERS REMITTANCES RETURN RETURNS SAFETY NETS SALES TAXES SKILLED MIGRANTS SKILLED WORKERS SOCIAL DEVELOPMENT SOCIAL SAFETY NETS SOCIAL SERVICES STRUCTURAL ADJUSTMENT TAX TAX BASE TAX BRACKETS TAX COLLECTIONS TAX COMPETITION TAX FORMS TAX HAVENS TAX INCENTIVES TAX POLICY TAX RATES TAX REVENUE TAX REVENUES TAX STRUCTURE TAX SYSTEM TAX TREATIES TAX TREATMENT TAXATION POLICIES TAXPAYERS TEMPORARY WORK TRADE LIBERALIZATION TREATIES UNDOCUMENTED IMMIGRANTS WAGES International migration is intimately intertwined with issues of taxation, inequality and public welfare benefits, both in home and destination countries. In home countries the emigration of workers, especially high-skilled workers, is often perceived to create a fiscal loss due to the cost of educating these workers and foregone tax revenues that may reduce the fiscal resources available for income redistribution. On the other hand, remittances, when well spent, can create multiplier effects and contribute to increasing domestic demand and growth, as well as increasing tax collections. In destination countries, immigration raises other challenges, especially when poor and undocumented workers are perceived as taking more from the government budget in the form of social welfare and health care benefits than what they contribute in the form of tax revenues. This note discusses some of the current issues around migration and taxation including how to compensate home countries for the fiscal losses of high-skilled emigration, how to bring immigrants into the tax system and make them net contributors, whether or not to tax inward, cross-border remittances, and designing appropriate tax incentives to encourage diaspora investment in the home country. 2012-08-13T10:14:05Z 2012-08-13T10:14:05Z 2012-05 http://documents.worldbank.org/curated/en/2012/05/16252940/migration-taxation-inequality http://hdl.handle.net/10986/10038 English Economic Premise; No. 80 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic BANK POLICY
BANK TRANSACTIONS
BENEFITS OF MIGRATION
BONDS
BRAIN DRAIN
BUSINESS ENVIRONMENT
CAPITAL FLOWS
CONSUMER GOODS
CONSUMPTION TAXES
CONTRIBUTION OF REMITTANCES
DEPOSITS
DESTINATION COUNTRY
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DIASPORA
DOMESTIC INCOME
DOUBLE TAXATION
EMIGRATION
EMPLOYMENT
EXCHANGE RATE
EXCHANGE RATES
FEDERAL GOVERNMENTS
FINANCIAL SERVICES
FISCAL BURDEN
FISCAL CONSOLIDATION
FOREIGN CURRENCY
GLOBAL ECONOMIC PROSPECTS
GOVERNMENT BUDGET
GOVERNMENT REVENUES
GROSS DOMESTIC PRODUCT
HOME COUNTRIES
HOME COUNTRY
HOST COUNTRIES
HOST COUNTRY
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPACT OF MIGRATION
IMPLICIT TAX
INCOME
INCOME GROUPS
INCOME INEQUALITY
INCOME TAX
INCOME TAXES
INCOMES
INFORMAL CHANNELS
INNOVATIVE FINANCING
INSURANCE
INTERNAL REVENUE
INTERNATIONAL MIGRATION
INTERNATIONAL MOBILITY
INTERNATIONAL TRADE
INVESTMENT CLIMATE
JURISDICTIONS
LABOR MARKET
LABOUR MIGRATION
LOW-INCOME COUNTRIES
MACROECONOMIC STABILITY
MARGINAL TAX RATES
MATCHING GRANTS
MATURITY
MIDDLE-INCOME COUNTRIES
MIGRANT WORKERS
MIGRANTS
MIGRATION POLICY
MONEY TRANSFER
MONEY TRANSFER SERVICES
OPTIMAL TAXATION
PENSIONS
PRODUCTIVITY
PUBLIC FINANCE
PUBLIC FINANCES
PUBLIC SERVICES
RECIPIENT COUNTRIES
REMITTANCE
REMITTANCE FLOWS
REMITTANCE INFLOWS
REMITTANCE RECIPIENTS
REMITTANCE TRANSFERS
REMITTANCES
RETURN
RETURNS
SAFETY NETS
SALES TAXES
SKILLED MIGRANTS
SKILLED WORKERS
SOCIAL DEVELOPMENT
SOCIAL SAFETY NETS
SOCIAL SERVICES
STRUCTURAL ADJUSTMENT
TAX
TAX BASE
TAX BRACKETS
TAX COLLECTIONS
TAX COMPETITION
TAX FORMS
TAX HAVENS
TAX INCENTIVES
TAX POLICY
TAX RATES
TAX REVENUE
TAX REVENUES
TAX STRUCTURE
TAX SYSTEM
TAX TREATIES
TAX TREATMENT
TAXATION POLICIES
TAXPAYERS
TEMPORARY WORK
TRADE LIBERALIZATION
TREATIES
UNDOCUMENTED IMMIGRANTS
WAGES
spellingShingle BANK POLICY
BANK TRANSACTIONS
BENEFITS OF MIGRATION
BONDS
BRAIN DRAIN
BUSINESS ENVIRONMENT
CAPITAL FLOWS
CONSUMER GOODS
CONSUMPTION TAXES
CONTRIBUTION OF REMITTANCES
DEPOSITS
DESTINATION COUNTRY
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DIASPORA
DOMESTIC INCOME
DOUBLE TAXATION
EMIGRATION
EMPLOYMENT
EXCHANGE RATE
EXCHANGE RATES
FEDERAL GOVERNMENTS
FINANCIAL SERVICES
FISCAL BURDEN
FISCAL CONSOLIDATION
FOREIGN CURRENCY
GLOBAL ECONOMIC PROSPECTS
GOVERNMENT BUDGET
GOVERNMENT REVENUES
GROSS DOMESTIC PRODUCT
HOME COUNTRIES
HOME COUNTRY
HOST COUNTRIES
HOST COUNTRY
HUMAN CAPITAL
HUMAN DEVELOPMENT
IMPACT OF MIGRATION
IMPLICIT TAX
INCOME
INCOME GROUPS
INCOME INEQUALITY
INCOME TAX
INCOME TAXES
INCOMES
INFORMAL CHANNELS
INNOVATIVE FINANCING
INSURANCE
INTERNAL REVENUE
INTERNATIONAL MIGRATION
INTERNATIONAL MOBILITY
INTERNATIONAL TRADE
INVESTMENT CLIMATE
JURISDICTIONS
LABOR MARKET
LABOUR MIGRATION
LOW-INCOME COUNTRIES
MACROECONOMIC STABILITY
MARGINAL TAX RATES
MATCHING GRANTS
MATURITY
MIDDLE-INCOME COUNTRIES
MIGRANT WORKERS
MIGRANTS
MIGRATION POLICY
MONEY TRANSFER
MONEY TRANSFER SERVICES
OPTIMAL TAXATION
PENSIONS
PRODUCTIVITY
PUBLIC FINANCE
PUBLIC FINANCES
PUBLIC SERVICES
RECIPIENT COUNTRIES
REMITTANCE
REMITTANCE FLOWS
REMITTANCE INFLOWS
REMITTANCE RECIPIENTS
REMITTANCE TRANSFERS
REMITTANCES
RETURN
RETURNS
SAFETY NETS
SALES TAXES
SKILLED MIGRANTS
SKILLED WORKERS
SOCIAL DEVELOPMENT
SOCIAL SAFETY NETS
SOCIAL SERVICES
STRUCTURAL ADJUSTMENT
TAX
TAX BASE
TAX BRACKETS
TAX COLLECTIONS
TAX COMPETITION
TAX FORMS
TAX HAVENS
TAX INCENTIVES
TAX POLICY
TAX RATES
TAX REVENUE
TAX REVENUES
TAX STRUCTURE
TAX SYSTEM
TAX TREATIES
TAX TREATMENT
TAXATION POLICIES
TAXPAYERS
TEMPORARY WORK
TRADE LIBERALIZATION
TREATIES
UNDOCUMENTED IMMIGRANTS
WAGES
Moreno-Dodson, Blanca
Mohapatra, Sanket
Ratha, Dilip
Migration, Taxation, and Inequality
relation Economic Premise; No. 80
description International migration is intimately intertwined with issues of taxation, inequality and public welfare benefits, both in home and destination countries. In home countries the emigration of workers, especially high-skilled workers, is often perceived to create a fiscal loss due to the cost of educating these workers and foregone tax revenues that may reduce the fiscal resources available for income redistribution. On the other hand, remittances, when well spent, can create multiplier effects and contribute to increasing domestic demand and growth, as well as increasing tax collections. In destination countries, immigration raises other challenges, especially when poor and undocumented workers are perceived as taking more from the government budget in the form of social welfare and health care benefits than what they contribute in the form of tax revenues. This note discusses some of the current issues around migration and taxation including how to compensate home countries for the fiscal losses of high-skilled emigration, how to bring immigrants into the tax system and make them net contributors, whether or not to tax inward, cross-border remittances, and designing appropriate tax incentives to encourage diaspora investment in the home country.
format Publications & Research :: Brief
author Moreno-Dodson, Blanca
Mohapatra, Sanket
Ratha, Dilip
author_facet Moreno-Dodson, Blanca
Mohapatra, Sanket
Ratha, Dilip
author_sort Moreno-Dodson, Blanca
title Migration, Taxation, and Inequality
title_short Migration, Taxation, and Inequality
title_full Migration, Taxation, and Inequality
title_fullStr Migration, Taxation, and Inequality
title_full_unstemmed Migration, Taxation, and Inequality
title_sort migration, taxation, and inequality
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2012/05/16252940/migration-taxation-inequality
http://hdl.handle.net/10986/10038
_version_ 1764411595966906368