International Tax Competition Involves Efforts by National Governments

Multiple Choice

International tax competition involves efforts by national governments:

A) to act together to jointly raise their tax rates and thereby remove incentives for people to shift taxable activities to other locales.
B) to reduce their tax rates below those prevailing in other countries in an effort to induce individuals and businesses to engage in taxable activities within their borders instead.
C) to act together to jointly establish identical tax bases to which they will apply identical tax rates.
D) to increase tax rates while expanding their tax bases in an effort to generated coordinated increases in tax revenues.