UPDATE: TJN is among a host of signatories to a letter (published here) calling on the Luxembourg authorities to refrain from prosecuting whistleblower Antoine Deltour. In the letter we note that even the Luxembourg government has publicly recognised that the information revealed by M Deltour has … [Read more...]
Tax Wars
Corporate tax cuts don’t work
That's the headline of a short article in the current edition of The World Today, the flagship publication of London-based think tank Chatham House. An excerpt: … [Read more...]
Not In My Name: remarkable, rare voices of remorse and mortification in Luxembourg
We have often remarked on how easy it is for financial services interests to "capture" small tax havens or secrecy jurisdictions. It's a common pattern and a woefully under-studied phenomenon where the capture by global offshore finance extends beyond the policy-making apparatus … [Read more...]
California’s tax hikes versus Kansas’ tax cuts: early results now in
From a new paper by Paul Caron of Pepperdine University and Joseph Bankman of Stanford University: "The conventional wisdom in California two years ago was that raising taxes on the wealthy would harm the economy and doom any politician who dared touch this third rail. Instead, the public … [Read more...]
Patent boxes: progress, or more racing to the bottom?
We've written quite a bit about patent boxes in the last few days. A Patent Box is a tax incentive that reduces effective corporation tax rates on income attributable to patents, subject to certain conditions. We at TJN think they are generally a terrible idea. In two patent box blogs last week … [Read more...]
Hidden Profits: The EU’s role in supporting an unjust global tax system 2014
From Eurodad, an important new report, whose press release goes: Hidden Profits: The EU's role in supporting an unjust global tax system 2014 This report – the second in a series of three annual reports – brings together civil society organisations (CSOs) in 15 countries across the EU. Experts in … [Read more...]
Why the Netherlands is the world’s largest source of FDI
Dutch FDI assets in 2012 were even larger than the United States', on some metrics. This guest blog from Francis Weyzig explains what is going on. Why the Netherlands is the world’s largest source of FDI Luxembourg is in the spotlight these days because so many multinationals shift their … [Read more...]
Luxembourg’s Sweetheart Deals: Could the OECD Stop Them?
Guest blog by Prof. Sol Picciotto, a TJN Senior Adviser. Luxembourg’s Sweetheart Deals: Could the OECD Stop Them? In an earlier comment on the Luxembourg tax leaks, we pointed out that there is no world tax authority which can judge whether the sweetheart deals it has been offering … [Read more...]
Quote of the day: Wolfgang Schäuble on tax wars
In this article on why tax matters often need to be addressed at a global level, German finance minister Wolfgang Schäuble discusses the urgent need for new international rules to protect tax sovereignty and warns against the dangers of tax wars, commonly but misleadingly known as 'tax … [Read more...]
Are Kenyan tax holidays over?
Here's a headline (see picture) that should send ripples across the whole of Africa. Kenya's Business Daily reports that the Kenyan government is considering plans to withdraw tax exemptions granted to foreign investors, including ten year tax holidays on corporate profits and ten year withholding … [Read more...]
2015 Research Workshop: Call for Papers – Should Nation States ‘Compete’?
Call for papers for a Research Workshop SHOULD NATION STATES ‘COMPETE’? … [Read more...]
Bono: Tax Haven Salesman for the Celtic Paper Tiger
We've been (almost) biting our TJN tongues on Mr. Bono's latest outburst since the weekend. We were waiting for this to come out. Cross-posted from Naked Capitalism, with permission. We've tweaked a couple of words here and there. Bono: Tax Haven Salesman for the Celtic Paper Tiger By Nicholas … [Read more...]
Publishing tax breaks and subsidies for corporations – a good idea whose time has come
The indefatigable US-based organisation Good Jobs First has sent a fascinating email, which relates to the United States but could have general relevance for other countries. This one is located at the fascinating, busy intersection between tax and transparency. The intro: "For many years, we at … [Read more...]
CTJ: Art Laffer’s travelling fiscal circus
From Citizens for Tax Justice in the U.S.: "It is a truism in Washington that being wrong does not preclude one from wielding influence. There are, however, some pundits who are so egregiously wrong that it boggles the mind to find policymakers taking their advice. Art Laffer is one of these … [Read more...]
Kansas/Missouri: local ceasefire in U.S. tax border war?
Last year the St. Louis Post-Despatch published an editorial entitled Missouri Senate declares class war against citizens, looking at tax subsidies being showered on businesses in an effort to lure them away from neighbouring Kansas - which, in turn, has been showering subsidies on businesses to … [Read more...]
