Competing Aims: Reforming Tax Policy Across Europe After Covid
Tax competition is often presented as a zero-sum game, instead of an important policy tool that can foster growth and create further opportunities to all participants of the economy. Globalisation created a world where capital is highly mobile and businesses can choose competitive economies with the highest possible returns on their investment. Countries with simple and neutral tax systems have better chances of attracting investment, minimising tax evasion, and maximising economic growth. Yet, many European countries have chosen a path of complicated tax regimes, with high overall taxation and a great number of loopholes and exemptions.