Reuven Avi-Yonah

Reuven S. Avi-Yonah is the Irwin I. Cohn Professor of Law and director of the International Tax LL.M. Program at the University of Michigan.

Recent Articles

World-Class Tax Evasion

The current age of globalization can be distinguished from the previous one (1870-1914) by the much higher mobility of capital than labor. In the previous age, before immigration restrictions, labor was at least as mobile as capital. Today's increased capital mobility reflects both technological changes (the ability to move funds electronically) and policy changes (the relaxation of exchange controls and liberalization of trade rules). The mobility of capital in turn has led to tax competition, especially for foreign investment. Sovereign countries lower tax rates on income earned by foreigners within their borders in order to attract both portfolio and direct investment. Tax competition, in turn, threatens to undermine the individual and corporate income taxes that traditionally have been the main source of revenue for modern welfare states. The developed countries responded, first by shifting the tax burden from (mobile) capital to (less mobile) labor, and second, when further...