Richard D. Pomp

The Brain Drain: A Tax Analysis of the Bhagwati Proposal

Abstract To alleviate the problems caused by the brain drain, Professor Bhagwati proposes that professional, technical, and kindred persons who emigrate from less developed countries be subjected to a special tax on the income they earn in developed countries. This paper highlights the political and legal issues raised by his proposal and examines three approaches to implementation: a tax levied by the less developed country, a tax levied by the developed country, and a tax levied by the United Nations. Specific aspects of the proposal which require further study and refinement, such as administrative feasibility, are outlined.