Suchergebnisse

In the past, governments had more freedom in setting their taxes as the barriers to free movement of capital and people were high. The gradual process of globalization is lowering these barriers and results in rising capital flows and greater manpower mobility. Tax competition exists when governments are encouraged to lower fiscal burdens to either encourage the inflow of productive resources or discourage the exodus of those resources. With tax competition in the era of globalization politicians have to keep tax rates "reasonable" to dissuade workers and investors from moving to a lower tax environment. Most countries started to reform their tax policies to improve their competitiveness. However, the tax burden is just one part of a complex formula describing national competitiveness. The other criteria like total manpower cost, labor market flexibility, education levels, political stability, legal system stability and efficiency are also important. ; peer-reviewed

The paper deals with the brain drain phenomenon (rational minds migration), displayed inside the European Union, in close correlation with European tax competition. Speciality literature from the countries of the European Union deals with great responsibility the migration process of the specialists, numerous studies being dedicated to this phenomenon. Through the present paper we aim to study this correlation and the evaluation of the implications for the member states of the European Union, by elaborating a model by means of which there are tested the correlations between different variables and the quantification of the taxation effects upon the brain drain phenomenon. The model is an adaptation of the so-called "Model of the Brain Drain and human capital formation" elaborated by Mountford (1997) by which there are described the different researched variables: brain gain, brain drain, migration competition and tax competition. Obviously, the scenarios may be different from country to country depending on the different values of the two key factors taken into account: migration probability and considerable differences of technological capacity. ; peer-reviewed