We have long championed tax competition among nations as an effective means to pressure for low taxes in all nations. Because tax competition is so effective, with the ability of individuals and businesses to move to other places, scores of nations have reduced taxes in recent years. Many have adopted the so-called "flat tax" -- the far less complicated, simple system that has upped revenues and made life easier for all.
Now comes a new book published by the Cato Institute entitled: The Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It. It is authored by Chris Edwards and Daniel J. Mitchell, the latter a long-time associate of the Sovereign Society whom we often quote in these pages.
In the increasingly integrated global economy, nations are waging a battle between governments to attract investment and skilled workers by overhauling their tax codes to create a more attractive business environment. This authoritative book challenges the U.S. government to lead the tax competition battle in the international marketplace.
Tax Competition Is Good
This book explores one of the most dynamic and exciting aspects of globalization - - international tax competition. With rising mobility and soaring capital flows, individuals and businesses are gaining freedom to work and invest in nations with lower tax rates. That freedom is pressuring governments to cut taxes on income, investment, and wealth.
The book chronicles tax reforms around the world in recent decades. They describe the dramatic business tax cuts of Ireland, the flight of successful people from high tax France, and the introduction of simple "flat taxes" in more than two dozen nations.
Howls from the Left
As with other aspects of economic globalization, tax competition is generating intense political opposition, especially from high tax, socialist welfare states. Numerous leftist governments and international organizations, such as OECD, are fighting to restrict tax cuts. Edwards and Mitchell challenge those efforts, arguing that tax competition is helping to advance prosperity, expand human rights, and rein in bloated governments.
The authors argue that the U.S. economy can be revitalized by embracing competition and overhauling the federal tax code. They discuss how current tax rules suppress wages and investment and describe the tax changes needed for workers and businesses to succeed in the fast paced global economy. Rather than idly complaining about jobs and capital moving offshore, this book argues that policy makers need to embrace major tax reforms to ensure rising standards of living for Americans in the years ahead.
For more about this important book, click here.
Comments