The benefits of global tax games
The growth of global trade and rise of more sophisticated financial products from the late 1970s has encouraged in tax arbitrage by multinational firms and tax competition between governments. This phenomenon has become a fixation of global governance do-gooders and bureaucrats. Their seemingly innocuous push for international tax coordination and transparency, however, will have costs that are hard to measure.
Thank you, Mr. Trump
U.S. President Donald Trump is right that both the EU and China use unfair trade practices. Now, his threats to impose tariffs on European goods – hypocritically branded “protectionist” by many countries with higher trade barriers – have brought EU officials to the negotiating table. Perhaps the EU will finally engage in freer trade, to the benefit of Europe and the world.
Opinion: The United States should rein in the global tax bureaucrats
President Donald Trump was right to disrupt the G7’s efforts to promote “fair, progressive, effective and efficient tax systems.” The goal may seem innocuous, but it is quite the opposite – favoring large, intrusive governments at the expense of individual economic freedom. One of the most damaging proposals to create a global tax bureaucracy is the Base Erosion and Profit Shifting (BEPS) project – a pet scheme of the OECD.
The European Semester: More power to eurozone governments
The sovereign debt crisis prompted a raft of new EU regulations overseeing member states’ fiscal and budgeting processes. At first, the rules gave a lot of power to the European Commission, but eurozone governments now tend to use the coordination process to place themselves above the Commission and the peripheral member states. There is still no credible institutional backup, however, against debt contagion.
EU budget plan offers progress and pitfalls
The European Commission is finally taking steps to trim unproductive spending in areas like agriculture in its budget framework for 2021-2027. But while the new emphasis on fighting waste is promising, the fiscal plan also contains troubling proposals. One of the most disturbing is to reduce cohesion payments to countries that violate European "values," based on the arbitrary interpretations of the Commission and a few powerful member states.
Opinion: Europe’s misguided tax crusade
While the United States cuts taxes to spur growth, the European Union is blacklisting countries regarded as threats its fiscal system. The contrast speaks volumes about the economic priorities on both sides, and does not bode well for the long-term viability of Europe’s welfare states.
The EU’s tilt toward centralization
The European Commission has proposed creating a European Ministry of Economy and Finance, and transforming the European Stabilization Mechanism into the European Monetary Fund, controlled by Brussels. These steps toward economic centralization are dangerous for Europe’s competitiveness. What it needs is diversity and regional competition.