Thread: Read -- The EU and the US ended Google's tax evasion scheme. States create these kinds of loopholes and they can end them too. reuters.com/article/us-goo…
2/ As @VincentAB deftly shows, international agreements between the US and other advanced economies generated the opportunity structures for companies like Google and others to play the system. cambridge.org/core/journals/…
@VincentAB 3/In other words, this is not simply a game of structural power, where firms use the threat of exit to force down tax rates. Instead, states created a version of globalization that opened up new opportunities for global firms.
@VincentAB 4/And just as they can create these opportunities, so too can they take them away. That is the idea behind a piece w/@henryfarrell in @biz_politics in which we describe how states can use structuring power to limit the exit options of these firms. deepdyve.com/lp/de-gruyter/…
@VincentAB @henryfarrell @biz_politics 5/In the wake of the financial crisis, the US and EU wake up to what has happened and decide to crack down. latimes.com/business/la-fi…
@VincentAB @henryfarrell @biz_politics 6/This is part of a more general story about how the US and EU are not simply beholden to global corporations. They can use their market power to shape global rules. foreignpolicy.com/2019/11/17/bei…
@VincentAB @henryfarrell @biz_politics 7/The key then is not globalization in and of itself but the politics behind different distribution of gains i.e. that allow things like the the double irish to exist in the first place.
