 Tax competition – areas of display and efectsRevista Tinerilor Economisti (The Young Economists Journal), 2008, vol. 1, issue 11, 33-42 Abstract: In the past, governments had more freedom in setting their taxes as the barriers to free movement of capital and people were high. The gradual process of globalization is lowering these barriers and results in rising capital flows and greater manpower mobility. Tax competition exists when governments are encouraged to lower fiscal burdens to either encourage the inflow of productive resources or discourage the exodus of those resources. With tax competition in the era of globalization politicians have to keep tax rates “reasonable” to dissuade workers and investors from moving to a lower tax environment. Most countries started to reform their tax policies to improve their competitiveness. However, the tax burden is just one part of a complex formula describing national competitiveness. The other criteria like total manpower cost, labor market flexibility, education levels, political stability, legal system stability and efficiency are also important. Keywords: tax competition; positive effects; negative effects; flat tax (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2008:i:11:p:33-42 Access Statistics for this article Revista Tinerilor Economisti (The Young Economists Journal) is currently edited by Ionascu Costel More articles in Revista Tinerilor Economisti (The Young Economists Journal) from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC. |
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