This silly video clip by Daniel Mitchell argues the case for unregulated tax competition between nations. The idea is that the lowest rates of company and personal income tax are best so globalisation which forces high tax countries to cut their taxes to levels of low tax countries to avoid job and investment losses must necessarily be a good thing.
It might be but it also might not be. Countries with higher taxes might wish to address the provision of public goods adequately and may wish to pursue redistributive goals implicit in social welfare programs. It is simple arrogance to assert that all such programs are flawed.
It seems to be US intellectual imperialism at work again. Indeed Mitchell describes all European politicians as being to the left of US liberal democrats. Even if this was true - so what?
On the other hand it is not clear how countries can effectively combat tax competition through bans and through policies promoting tax harmonisation. The OECD have tried but been relatively unsuccessful. Thus one argument for tax competition is that it is difficult to do much about it. I still thing the video clip is silly however since it argues the case for international tax competition as an ethical mideal without considering possible implied policy costs.
Mitchell is a member of the Cato Institute and a strong supporter of not only tax competition but also flat taxes.