While the OECD is still pushing for tax competition laws (i.e. harmonization of legal norms and policies regarding taxes), there is some sanity in the EU - luckily a legal advisor has told EU finance ministers that their idea for a "financial transaction tax" (the renown Tobin tax) just can't work as it's discriminatory. Left unsaid - it's a terrible policy and threatens financial intermediation throughout the region.
With the G20 meetings in full swing, most eyes have been turned towards the contortions of the world on Syria. But that doesn't mean that there isn't economics being discussed. And from the Dutch, ironically the home of the modern trader-state, comes a horrific proposal to direct energy towards tax evasion. I would say building the supra-national tax administration, able to punish tax evaders anywhere in the world, should be less of a priority than, say, growth-enhancing policies. Or stable monetary policy. Or improved business environments. Or labour market flexibility. Or about a million other things.
Predictably, the OECD approves.
Dr. Christopher Hartwell is an institutional economist and President of CASE Warsaw. All commentary on this page is exclusively his own and in no way represents the views of CASE, his wife, his dog, or anyone else. Especially not his wife or his dog.