The tedious discipline of tax competition
The fight against tax evasion and bank secrecy threatens the destruction of the prosperity and freedom.
Likes to claim the policy of having to provide for effective competition among private providers. The advantage of a lively competition for the consumers are finally clear: high quality, deep pinch, large selection. But what about the numerous offers of the government? Here the blessing of the competition suddenly seem to lose its shine - while the effects are quite similar.
Especially the control of competition policy is a thorn in the eye. The fight against tax havens has blossomed into a core task of the OECD. Given the euro crisis is driving the EU's tax harmonization ahead with vigor. The U.S. is seeking to access the world's income and assets of their citizens. Tax competition is categorized as fast as "harmful". No wonder, because the competition of tax sites is probably the most effective barrier against a broad fiscal disenfranchisement of citizens. As long as a possible vote with their feet and the property is, governments have to look for a reasonable price-performance ratio.
Exploding the national debt and social security systems cost-prohibitive to drive on the other hand, many governments of the West to shake off the shackles of tax competition. The increasingly aggressive pursuit of tax evaders and the systematic destruction of the banking secrecy should be seen against this background. Pierre Bessard describes in a current, internationally published LI-paper, why fiscal desperation is not a good guide. Individuals need ways and means to evade an inordinate grasp of their governments. The defense of tax competition, especially in Switzerland, is not only a moral imperative, it is perhaps the most effective remedy against harmful government spending and political irresponsibility.
For LI-paper (Centre for Tax Competition)