EU Fiscal Harmonization Policy vs. National Fiscal Systems
EU Fiscal Harmonization Policy vs. National Fiscal Systems

Summary/Abstract: The European Union (EU) is the largest single market in the world. The idea of fiscal harmonization to further the goal of a single market that provides similar conditions to companies across national borders, has been floated in the EU for some time now but has not been accepted by all the countries. As investment conditions within the EU become more homogenous, individual countries like Ireland have used tax competition as a means of differentiating themselves and attracting foreign investment. The paper argues that tax harmonization could allow the single market to realize its full potential, which it is unable to do at the moment due to obstacles such as double taxation, but concludes that lowering duties rather than harmonizing taxes would be a far more effective measure.

• Details
• Contents