OECD Launches New Effort to Undermine Tax Competition

Abstract

The OECD complains that “… governments are often under pressure to offer a competitive tax environment,” and that “failure to collaborate … could be damaging in terms of … a race to the bottom with respect to corporate income taxes.” In other words, the OECD is admitting that the BEPS project seeks higher tax burdens and the curtailment of tax competition. But that misguided pursuit flies in the face of the OECD’s own advocacy elsewhere of more efficient tax systems with lower corporate tax rates.

Keywords: race to the bottom through economic competition, international tax policy, low taxes on multinational companies

JEL Classification: H20, H25, H50, F53