Tax Competition

Do we need to coordinate our tax policy with other countries? Many observers think so.

Because different nations tax investment income and capital gains differently, many wealthy individuals can go shopping for a favorable tax venue.

“No fair!” cry some. “Those rich aren’t paying their fair share.”

But this goes back to what you see as government’s primary role. If it’s to re-slice the pie, then yes, we need more tax policy coordination. But if government’s role is mainly to make sure people aren’t robbed or cheated then a healthy dose of tax competition is a useful check on the acquisitive state.

Lost in all this discussion of a “fair share” is the definition if what’s fair. But as long as people can move, some states will attract them by defining fairness by letting them keep more of their own money. That sounds fair to me.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T18:44:09+00:00 May 9th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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