Dilemmas of tax-inducted location decisions
|Title:||Dilemmas of tax-inducted location decisions|
Vol. 7, No 2, 2014
Published date: 20-09-2014 (print) / 20-09-2014 (online)
Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
|Keywords:||fiscal policies, tax competition, tax harmonization, relocation, EU countries.|
In this paper the author discusses the problem how tax setting by governments may change the terms of competitiveness between countries and induce firms to initial location decisions. Here is important the question how direct tax coordination within the European Union will affect the tax competition and the development of national economies. According to the author, any attempt at harmonization of tax policies done in an arbitrary way, contrary to the freedom of economic activity, and consisting in harmonizing income tax rates through setting up a minimum rate or rate brackets would be harmful to growing economies and might pose a real threat to economic development. On the other hand, the some current proposals CCCTB (common con- solidated corporate tax base) could make tax regimes more transparent without limiting the conditions of tax competition.