This paper develops a novel competition criterion for evaluating institutional schemes. Roughly, this criterion says that one institutional scheme is normatively superior to another to the extent that the former would engender more widespread political competition than the latter. I show that this criterion should be endorsed by both global egalitarians and their statist rivals, as it follows from their common commitment to the moral equality of all persons. I illustrate the normative import of the competition criterion by exploring its (...) potential implications for the scope of egalitarian principles of distributive justice. In particular, I highlight the challenges it raises for global egalitarians' efforts to justify extending the scope of egalitarian justice beyond the state. (shrink)

Under conditions of high capital mobility, states are pressurised into various forms of tax competition to attract or retain capital and investors. When this occurs, the capacity of domestic institutions autonomously to generate fiscal policies is constrained. What exactly, if anything, is unjust about this phenomenon? This paper argues that tax competition puts particular pressure on internationalists, who must acknowledge that its occurrence makes our obligations of global justice more demanding, and that such obligations require supranational institutions in order to (...) be discharged. However, to the extent that tax competition is unjust from an internationalist point of view, this is due to the specific harm it does to states. Thus, the paper makes three contributions to the literature: it shows that tax competition has an impact on the demandingness of internationalist obligations of justice; discharging such obligations commits internationalists to accept a higher level of supranational institutionalization than is currently acknowledged; yet both the specific content of such obligations, and the kind of supranational regulation that is needed to discharge them, differ from those which cosmopolitans support. In sum, there are some cosmopolitan bullets which internationalists must bite, and others which they should continue to resist. (shrink)

Journal of Social Philosophy, EarlyView.

This article provides a survey of various topics in which questions about taxation feature alongside questions about justice. It seeks to argue mainly that taxation is a rather fragmentary domain of inquiry about which it is hard to envisage the development of views about what justice requires with respect to tax policy in general. Guided by this idea, the article attempts to highlight some aspects of taxation whose connection with justice has been under-explored by philosophers, as well as to acquaint (...) the reader with a sense of the more thoroughly researched areas. (shrink)

Widespread tax evasion and avoidance have recently led to both significant reforms of international tax governance and increased attention from theorists of global tax justice. Against the background of an analysis of the double challenge of effectiveness and distribution facing the taxation of multinational enterprises, this paper puts forward a taxonomy of recent contributions of the tax justice literature. This taxonomy not only opens up an original angle of interpretation on global tax justice, but also provides a vantage point from (...) which to evaluate recent reforms by the Organisation for Economic Co-operation and Development. (shrink)

Substantially increased wealth inequality across the developed world has prompted many philosophers, economists and legal theorists to support comprehensive taxes on all forms of wealth. Proposals include levying taxes on the basis of total wealth, or alternatively the change in the value of capital holdings measured from year-to-year. This contrasts with most existing policies that tax capital assets at the point they are transferred from one beneficiary to another through sale or gifts. Are these tax reforms likely to meet their (...) aims of greater economic and political equality? We argue that these policies are likely to fail because, following neoclassical economic theory, they are based on a conception of capital as possessing given values in what amounts to a static equilibrium. This mischaracterizes the dynamic and subjective character of market economies and the contested value of real instantiations of capital goods. This makes them very difficult, often impossible, to value apart from at the point of voluntary transfer or profit realization. This means most taxes levied on a mark-to-market basis will be arbitrary and unfair. We propose alternative policies based on an income realization approach to taxation that are more likely to curb excessive wealth holdings. This includes introducing international treaties that prohibit preferential tax treatment for individual companies and specific sectors, and broadening the income tax base to include the imputed rent of personal housing wealth. (shrink)

Substantially increased wealth inequality across the developed world has prompted many philosophers, economists and legal theorists to support comprehensive taxes on all forms of wealth. Proposals include levying taxes on the basis of total wealth, or alternatively the change in the value of capital holdings measured from year-to-year. This contrasts with most existing policies that tax capital assets at the point they are transferred from one beneficiary to another through sale or gifts. Are these tax reforms likely to meet their (...) aims of greater economic and political equality? We argue that these policies are likely to fail because, following neoclassical economic theory, they are based on a conception of capital as possessing given values in what amounts to a static equilibrium. This mischaracterizes the dynamic and subjective character of market economies and the contested value of real instantiations of capital goods. This makes them very difficult, often impossible, to value apart from at the point of voluntary transfer or profit realization. This means most taxes levied on a mark-to-market basis will be arbitrary and unfair. We propose alternative policies based on an income realization approach to taxation that are more likely to curb excessive wealth holdings. This includes introducing international treaties that prohibit preferential tax treatment for individual companies and specific sectors, and broadening the income tax base to include the imputed rent of personal housing wealth. (shrink)

International tax competition undermines states’ capacity for redistributive taxation. It is thus problematic from the point of view of both cosmopolitan and internationalist theories of justice. This article examines the proposal of a fiscal policy constraint that prohibits tax policies if they are strategically motivated and harmful to effective fiscal self-determination internationally. I argue that we should opt for a more robust, preference-independent mechanism to prevent harmful tax competition instead. States should, as a matter of justice, accept global minimum tax (...) rates on mobile tax bases. (shrink)

This article argues that capital flight of real investment presents governments with a quadrilemma. First, governments can tailor their policies to attract investors – but this is incompatible with a whole range of alternative policy choices. Second, they can simply accept capital flight – but this is incompatible with a robust capital stock and tax base. Third, they can harmonize its taxes and regulations with other states – but this is incompatible with international independence. Fourth, they can impose capital controls (...) – but this is incompatible with international capital mobility. These incompatibilities make up four different goals, the value of which are described. Strategies may be mixed, but the pursuit of any three goals must always come at the expense of the fourth. (shrink)

This paper presents a rival proposal to that presented by Dietsch and Rixen to ensure international background justice. It explains the notion of background justice and how this is challenged by the lack of international co-operation on taxation policy. It then presents the principles which Dietsch and Rixen propose in order to respond to this concern: the principle of membership and the principle of constraint. The paper proposes alternative principles of relationship and counter-incentive, which are argued to be superior means (...) to achieve the aim of global background justice. This is because the alternative principles do not interfere with the right of states to set the tax-rates that they desire. The counter-incentive approach instead rewards the states who set higher taxes and provides them with revenues from taxpayers who have left either to seek lower taxes elsewhere or for any of a number of other reasons. (shrink)

Many supporters of open borders argue that restrictions on immigration are unjust in part because they undermine equal opportunity. Borders prevent the globally least-advantaged from pursuing desirable opportunities abroad, cementing arbitrary facts about birth and citizenship. In this paper I advance an argument from equal opportunity to global freedom of movement. In addition to preventing people from pursuing desirable opportunities, borders also create a prone, segregated population that can be dominated and exploited. Restrictions on mobility do not just trap people (...) in bad opportunity sets—they help create bad opportunities by isolating the negative externalities of production and foreign policy. Freedom of movement can play a vital role in spreading risks and burdens, incentivizing their mitigation. Using an analysis of feudalism, segregation, and the transnational economy, I illustrate the centrality of space and mobility, showing why freedom of movement is a necessary tool for preventing political and economic oppression. (shrink)

Four years after the Panama Papers scandal, tax avoidance remains an urgent moral-political problem. Moving beyond both the academic and policy mainstream, I advocate the “democratization of tax enforcement,” by which I mean systematic efforts to make tax avoiders accountable to the judgment of ordinary citizens. Both individual oligarchs and multinational corporations have access to sophisticated tax avoidance strategies that impose significant fiscal costs on democracies and exacerbate preexisting distributive and political inequalities. Yet much contemporary tax sheltering occurs within the (...) letter of the law, rendering criminal sanctions ineffective. In response, I argue for the creation of Citizen Tax Juries, deliberative minipublics empowered to scrutinize tax avoiders, demand accountability, and facilitate concrete reforms. This proposal thus responds to the wider aspiration, within contemporary democratic theory, to secure more popular control over essential economic processes. (shrink)

Rich people stash away trillions of dollars in tax havens like Switzerland, the Cayman Islands, or Singapore. Multinational corporations shift their profits to low-tax jurisdictions like Ireland or Panama to avoid paying tax. Recent stories in the media about Apple, Google, Starbucks, and Fiat are just the tip of the iceberg. There is hardly any multinational today that respects not just the letter but also the spirit of tax laws. All this becomes possible due to tax competition, with countries strategically (...) designing fiscal policy to attract capital from abroad. The loopholes in national tax regimes that tax competition generates and exploits draw into question political economic life as we presently know it. They undermine the fiscal autonomy of political communities and contribute to rising inequalities in income and wealth.Building on a careful analysis of the ethical challenges raised by a world of tax competition, this book puts forward a normative and institutional framework to regulate the practice. In short, individuals and corporations should pay tax in the jurisdictions of which they are members, where this membership can come in degrees. Moreover, the strategic tax setting of states should be limited in important ways. An International Tax Organisation should be created to enforce the principles of tax justice.The author defends this call for reform against two important objections. First, Dietsch refutes the suggestion that regulating tax competition is inefficient. Second, he argues that regulation of this sort, rather than representing a constraint on national sovereignty, in fact turns out to be a requirement of sovereignty in a global economy. The book closes with a series of reflections on the obligations that the beneficiaries of tax competition have towards the losers both prior to any institutional reform as well as in its aftermath. (shrink)

This article argues that capital flight of real investment presents governments with a quadrilemma. First, governments can tailor their policies to attract investors – but this is incompatible with a whole range of alternative policy choices. Second, they can simply accept capital flight – but this is incompatible with a robust capital stock and tax base. Third, they can harmonize its taxes and regulations with other states – but this is incompatible with international independence. Fourth, they can impose capital controls (...) – but this is incompatible with international capital mobility. These incompatibilities make up four different goals, the value of which are described. Strategies may be mixed, but the pursuit of any three goals must always come at the expense of the fourth. (shrink)