Most governments have laws to prevent cartels and to promote competition. However, governments do not apply the logic that leads them to use competition policy against large firms such as Microsoft to their own activities. In particular, the EU is trying systematically to undermine those governments that promote tax competition and which presently prevent tax rates from rising to yet higher levels.
Beginning with a primer on international taxation, this IEA monograph shows how the benefits of tax competition accrue to all citizens. The activities of so-called tax havens frequently prevent the double or triple taxation of investment returns, and therefore facilitate the free movement of capital throughout the world. The author outlines the current threats to tax competition from the EU and the OECD and proposes ways in which the UK government should respond to those threats.
This monograph is essential reading for all with an interest in tax policy as well as for anybody who is concerned about cartels of powerful governments undermining economic freedom and prosperity through the use of anti-competitive tax policies.