Tax competition in EU and USA: A comparative analysis of the automotive and telecommunication industries

METAXAS, THEODORE and NIKOU, RANIA (2020): Tax competition in EU and USA: A comparative analysis of the automotive and telecommunication industries.

Abstract

The aim of this article is to define the meaning of tax competition. More specifically, it carries out a comparative analysis between the European Union and the United States of America studying two key sectors of their economies, the motor industry and telecommunications with the aim of featuring which of these is more tax competitive. The comparison criteria are VAT and sales tax, excise duties, corporate income tax, wage costs and in particular the tax burden on labor, taxing savings and duties on trade. In some cases, the EU seems to be more competitive, and in other cases, the USA does so. With regard to motor industry and telecommunications, it seems that in most of the criteria featured, they are affected according to the rest areas of economy. We conclude that the issue of tax competition, and in particular the comparison between the EU and the USA, needs further investigation. Finally, substantial tax reforms as a means of promoting healthy tax competition, seems to be desiderata by both parties.

• Item Type: MPRA Paper
• Language: English
• Keywords: Tax competition; EU; USA; Automotive Industry; Telecommunications
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L62 - Automobiles ; Other Transportation Equipment ; Related Parts and Equipment; L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services ; Computer Software

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