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Posted on 12 May 2017 5:07 pm
The race to the bottom with tax cuts simply ignores the fact that nation states are not all the same.
Government subsidies and protectionism all distort the competiveness of trade.
Tax cuts most likely favour international companies a lot more which operate globally in tax havens than a small business operating locally.
Infrastructure, health, education and welfare spending dependent on tax revenue differ widely. National political institutions are not all the same.
The government's argument is naive.
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