Tax competition: a blessing or a curse?

December 02, 2010 5:00 PM

To be a truly competitive economy, the UK must have a competitive tax system. The EU and other international organisations like the OECD and the IMF have promoted policies that would restrict tax competition.

The Instituto Bruno Leoni in Italy have today released a paper that outlines a robust case for why tax competition is crucial and can help to restrict governments’ natural inclination to grow.

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

"If there was only one supermarket, we would get ripped off when we went to buy our food. In the same way, having governments compete to offer a good deal is one of the things that limits their ability to rip off taxpayers. Tax competition keeps down the burden of taxation and stops it getting in the way of entrepreneurs and choking the life out of the economy. We should reject all attempts at tax harmonisation, a government tax cartel will come for our money in the end."

To read the full report, click hereTo be a truly competitive economy, the UK must have a competitive tax system. The EU and other international organisations like the OECD and the IMF have promoted policies that would restrict tax competition.

The Instituto Bruno Leoni in Italy have today released a paper that outlines a robust case for why tax competition is crucial and can help to restrict governments’ natural inclination to grow.

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

"If there was only one supermarket, we would get ripped off when we went to buy our food. In the same way, having governments compete to offer a good deal is one of the things that limits their ability to rip off taxpayers. Tax competition keeps down the burden of taxation and stops it getting in the way of entrepreneurs and choking the life out of the economy. We should reject all attempts at tax harmonisation, a government tax cartel will come for our money in the end."

To read the full report, click here

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