Document Type

Working Paper

Publication Date

10-28-2011

SSRN Discipline

International Environment of Global Business eJournals; PSN Subject Matter eJournals; ARN Subject Matter eJournals; Political Economy - Comparative eJournals; LSN Subject Matter eJournals; Tax Law & Policy eJournals; Public Economics eJournals; ERN Subject Matter eJournals; Public International Law eJournals; Financial Economics Network; Management Research Network; Economics Research Network; Legal Scholarship Network; Public Choice & Political Economy eJournals; Political Economy - International eJournals; Law School Research Papers - Legal Studies; INTL Subject Matter eJournals; Auditing, Litigation & Tax eJournals; International Law & Trade eJournals; MRN International Business & Management Network; Accounting Research Network; Political Science Network

Abstract

Formed in 1961 to promote global economic and social wellbeing the Organization for Economic Cooperation and Development OECD has become the collective voice of rich countries on international tax issues After an initial focus on improving commerce through addressing double taxation issues the organization shifted to a focus on restricting tax competition and increasing automatic exchanges of tax information In this paper we analyze the reasons for this shift in policy focus After describing the history of the OECD's work on taxation we examine the OECDs project against "harmful tax competition" as it has played out since its launch in the 1990s We analyze the mechanisms behind the project from a public choice perspective While typical economic models portray tax competition as a prisoner's dilemma between governments a more powerful perspective is of the incentives of politicians and bureaucrats We conclude that the project against tax competition is an example of the interplay between the interests of politicians and international bureaucrats which illustrates the role international organizations play in competition among interest groups

Download

Share

COinS