Article: Tax Incentives: An Endangered Species?

This powerful tool for increasing the competitiveness of states and nations is increasingly coming under fire.

IN SEl3TEMBER 2004, an investment tax credit granted to DaimlerChrysler AG by the state of Ohio was ruled unconstitutional by the U.S. Appeals court. In the European Union (EU), a movement is under way to halt tax competition among member states; meanwhile the Organization for Economic Co-operation and Development (OECD) - a group of major Western economic powers that cooperate to improve international economic development - is acting to end what it labels "harmful tax practices."

The United Nation's World Investment Report 2004 is urging a number of countries to ensure that tax ...

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