This policy paper explores the question of whether tax competition or coordination should be the primary approach to addressing tax issues in a global environment. The author argues that while both approaches have their advantages and disadvantages, the current global tax system is in need of significant reform. The paper highlights the challenges of tax competition, including the potential for tax avoidance and the difficulty of coordinating tax policies across different countries. The author suggests that a hybrid approach, combining elements of both tax competition and coordination, may be the most effective way to address these challenges. The paper concludes by calling for greater international cooperation on tax issues and the development of a more effective global tax system.
