A key feature of the recent EU and OECD standards for good behavior in international taxation is a presumption against preferential tax regimes (such as those offering advantageous treatment to non-residents or enterprises not active in the domestic market), which are seen as especially...

Explains features of the U.S. tax system that may prove instructive for Britain and the EU, especially as they relate to federalism. Discusses low tax rates, absence of a VAT or national consumption tax, lack of interstate equalization, subsidization of low earnings under the earned income credit.

This paper considers what it might mean to describe the VAT as a "money machine," tests whether it is one, and asks if it might consequently be wise not to adopt it. We find broadly persuasive evidence, using panel data for the OECD, for a "weak form" of the money–machine hypothesis: that...

Like any tax, the VAT is vulnerable to evasion and fraud. But its credit and refund mechanism offers unique opportunities for abuse, and this has recently become an urgent concern in the European Union (EU). This paper describes the main forms of noncompliance distinctive to a VAT, considers how...