This chapter examines the choices between tax competition and tax harmonisation in the European Union. The choices are highlighted on the basis of the trade-offs that can be made between diversity and scale, and between incentives and cooperation. The authors conclude that greater diversity appears feasible with respect to VAT rates, but that greater coordination seems to be required for capital income taxes and the excises. Labour income taxes can be left to the discretion of the member states.
|Title of host publication||Coordination and Growth|
|Subtitle of host publication||Essay in Honour of Simon Kuipers|
|Editors||GH Kuper, E Sterken, E Wester|
|Place of Publication||Dordrecht/Boston/London|
|Publisher||Kluwer Academic Publishers|
|Number of pages||13|
|Publication status||Published - 1 Jan 2001|