For those who followed my adventures at the OECD conference in Mexico, you have some idea of the dangers posed by bureaucrats trying to create a global tax cartel. For further information, I have an article in the latest issue of Offshore Investment. The whole article is worth reading, but the concluding paragraph is a good summary:
Politicians from high-tax nations – and the international bureaucracies that represent those governments – will continuously push schemes to restrict tax competition, and they have the advantages of time and (other people’s) money on their side. Although tax competition has been a liberalising force throughout the world, encouraging governments to lower tax rates, even leading a number of jurisdictions to adopt simple and fair flat tax systems, this liberalising process is being threatened by a number of policies mostly stemming from Europe. This is bad for low-tax jurisdictions and bad for taxpayers (especially those from high-tax nations). Tax harmonisation means higher tax rates and a more onerous burden of government. This inevitably translates into slower economic growth and stagnating living standards.
The article was co-authored by my summer intern, Hiwa Alaghebandian, who is back in school at William & Mary. Now, I have an intern from the utterly despicable University of Florida (which, sadly, has dominated my beloved Georgia Bulldogs in recent years). As you can see from the photo at a post-softball celebration, I’ve obviously traded down.