New tax designs ensure efficiency in cross-border savings income taxation.
The article discusses how different countries tax cross-border savings income. The researchers created a model to study how these tax systems work in the EU and the US. They found that only three tax designs are efficient: taxing based on where you live, sharing information about assets, and allowing countries to set withholding tax rates. These measures help prevent tax evasion and ensure fair taxation for both domestic and foreign savings.