Tax Competition: A Liberalizing Force in the World Economy

Dan Mitchell from the CATO Institute explains the benefits of tax competition in the short video "Tax Competition: A Liberalizing Force in the World Economy". He shows how tax competition has been essential for growth with regard to the global economy as well as with respect to the European market.

He mentions that the freedom to cut taxes has forced a lot of socialist governments in Europe to keep taxes at a low rate in order for them not to lose their tax base. Mitchell furthermore reminds the public that the France based OECD is a bureaucracy that works towards undermining national sovereignty by creating a global tax cartel.

The latter issue has gained increasing relevance by the recent decision of the political establishment in most EU nations to impose a constitution on the European public without consulting the latter. By doing so the political leaders in Europe have moved the EU closer to harmonization of taxes (and more socialism), and hence towards a reduction in economic growth.

The video is produced for the Center for Freedom and Prosperity.