People’s Daily published an article commenting on the U.S. tax cuts reform program. The article stated that (the purpose of) the tax cuts is to start a tax war (in the world). It said, “With U.S. tax reform, taxpayers will benefit. Who will lose? Apparently it is the U.S. federal government and other countries that will possibly be affected.”
From the perspective of other countries, the U.S. tax cuts are actually provoking a tax war. In response, some powerful countries will join the competition. They will either be competing with their tax cuts, offering benefits at the expense of their neighbors, or setting up tax havens. At present, such signs are showing in Britain, France, and other developed countries. This will not only throw the international tax order into chaos; it will also diminish the results of the anti-international tax vicious competition that the ‘tax base erosion and profit transfer (BEPS) action plan’ under the G20 and other international economic policy coordination framework previously achieved. In addition, the U.S. tax reform will directly damage the export-oriented countries that are unable to engage in tax competition.”
“Overall, even if the U.S. tax reform program passes in Congress and moves forward smoothly, it will need to work well with other countries in international tax coordination so as to prevent mutual harm and endangering the global economy.”
Source: People’s Daily, April 28, 2017
http://paper.people.com.cn/rmrb/html/2017-04/28/nw.D110000renmrb_20170428_2-21.htm