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Fiscal competition – blessing or bane?

In a bid to attract companies and wealthy individuals several countries in Europe as well as some Swiss cantons have reduced tax rates considerably over the past few years. The danger is though that lower taxes can also lead to cuts in public spending and vital services. Is it worth the risk?

There is also nothing that guarantees that firms or rich people will stay if they find a better deal elsewhere. So does it make sense to participate in this race from an economic point of view or is it simply kowtowing to the wealthy and big companies? Let us know what you think.

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Cantons begin to see downside of low tax rates

This content was published on The paradise that is central Switzerland is as much natural as it is fiscal: glassy lakes, snowy peaks, untouched natural beauty, and a state – cantonal – that only moderately taps individual income or business profits. These attributes cause foreign taxpayers to arrive in droves and the European Union to grumble that Switzerland as a…

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EU wields threat of financial blacklist

This content was published on By mid-2013, the Swiss government needs to propose solutions for “rapidly dismantling the systems for taxing corporations used by some cantons”. This ultimatum, issued by the EU Council of Ministers in December, was repeated a few days ago by the European commissioner for taxation Algirdas Semeta. The 27-nation bloc is going after the special tax…

Read more: EU wields threat of financial blacklist

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