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Is Tax Competition Harmful?

Barry University Andreas School of Business Working Paper

9 Pages Posted: 12 Nov 2004  

Robert W. McGee

Fayetteville State University - Department of Accounting

Date Written: November 2004

Abstract

There is an on-going debate about tax competition or tax harmonization. The high-tax welfare states want to keep tax rates high so that they can continue to fund their social welfare programs. But they are losing business and investments to lower tax jurisdictions where governments let people and businesses keep a higher percentage of their income. This issue is especially relevant in the European Union, since the older members tend to have relatively high tax rates, whereas some of the new members have relatively low tax rates. This paper examines this issue and attempts to answer the question of whether tax competition is harmful.

Keywords: Tax competition, tax harmonization, tax evasion, tax avoidance

JEL Classification: D6,F21,F36,H2,H87,M4,O52,H21,H22,H23,H24,H25,H26

Suggested Citation

McGee, Robert W., Is Tax Competition Harmful? (November 2004). Barry University Andreas School of Business Working Paper. Available at SSRN: https://ssrn.com/abstract=617444 or http://dx.doi.org/10.2139/ssrn.617444

Robert W. McGee (Contact Author)

Fayetteville State University - Department of Accounting ( email )

Fayetteville, NC 28301
United States

HOME PAGE: http://robertwmcgee.com

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