Book I Unit 1 K

Lead in Does globalization undermine the fiscal basis of the welfare state? Conventional wisdom believes so. Open borders cause tax competition, which in turn leads to a race to the bottom in capital taxation. Most economists support globalization because it raises the incoates new jobs at home and abroad and makes it harder for governments to sustain excessively high tax rates. As capital and labor become more mobile, international “tax competition” rises, which policymakers must respond to in a thoughtful and productive way. Many governments have responded to increased labor and capital mobility by cutting tax rates. Chris Edwards suggests that if the U.S. moves ahead with tax reform, other nations would probably act in the same way. As tax systems around the world become more efficient, economic output and incomes should rise.






The economic forces behind globalization include rising trade and investment flows, greater labor mobility, and rapid transfers of technology. Those trends have been spurred by the deregulation of financial markets, reductions in trade barriers, and lower Communication costs Words and Expressions： economic forces：经济实力 deregulation：调节（accommodate），取消 例句：Wherever he goes, he readily accommodates to new circumstances. 不管到哪儿,他都能迅速适应新环境。 financial markets：金融市场 Most economists support globalization because it raises the incomes of people worldwide. Another lesser-noticed benefit is that it makes it harder for governments to sustain excessively high tax rates. When economic integration increases, individuals and businesses gain the freedom to take advantage of low tax rates abroad. As a result, countries with high tax rates face large economic losses when borders are opened because people and capital flow out. As capital and labor become more mobile, international “tax competition” increases Reflections: Why do most economists support globalization? In the author’s view,what is another benefit of globalization? Words and Expressions：
capita income level higher than Great Britain or France.
Reflections:The author cites the case of Ireland, what does it show? Words and Expressions：
Unit 1 Tax Competition Spurs Globalization

Reflections: According to Chris Edwards,what do economic forces behind globalization include? What have stimulated those forces?


foreign direct investment
corporate tax rate
：外国直接投资
：团体税率 investment inflows ：投资流入
per-capita ：按人口平均；人均

Some nations are responding to tax competition in defensive and unproductive ways. High-tax countries have prodded international organization, such as the organization for Economic Cooperation and Development (OECD), to curtail tax competition. The idea essentially is to create a high-tax cartel by limiting the advantages offered by low-tax countries. In addition, many nations are adding layers of complex rules on businesses to discourage them from investing abroad, rather than reducing tax burdens so that businesses want to invest at home. The U.S. falls into this category since it has one of the highest corporate tax rates. Nevertheless, America continues to put off long-needed reforms.
Words & expressions

welfare state： 福利国家/福利制度 Conventional wisdom ：常人/普通人 to the bottom ：路的尽头/实际上 例句：My old friend walked with me to the bottom of the road 老朋友陪我走到这条路的尽头。 capital taxation： 资本税 moves ahead with：带头 （make the running / take the initiative / take the lead） Spur： To incite or stimulate 刺激\鞭策 例句：A business tax cut is needed to spur industrial investment 需要用减少商业税的办法刺激工业投资 句子翻译： Chris Edwards suggests that if the U.S. moves ahead with tax reform,
lesser-noticed benefit：不太引人注意的影响 take advantage of：利用 例句：take advantage of all educational opportunities 利用一切教育机会

Smart nations are treating international tax competition as an opportunity, not a threat. Ireland, for example, has had remarkable economic success as a result of its low-tax strategy adopted in the 1980s. this country of 3,800,000 people has attracted more foreign direct investment than either Japan or Italy in recent years. The main draw has been a low 10% corporate tax rate. Ireland has boomed from investment inflows and now has a per-
other nations would probably act in the same way



Globalization is steadily and inexorably (无情地, 冷酷地) knitting separate national economies into a single world economy. Basic economic forces so far have outweighed political efforts to slow this trend. Efforts to buck the effects of economic integration have ranged from anti-globalization protests to Congressional efforts to prevent American companies from reincorporating abroad. Words and Expressions： Knit …into …：To become securely joined or mended together closely 接合 例句:The two edges of that broken bone will knit together smoothly. 骨折的地方将接合得很好。 Outweigh：To be more significant than 胜过、超过 例句：The benefits outweigh the risks. 利益大于风险 Buck： To resist stubbornly and obstinately; balk 反对 例句：This drug should buck the poison.这药可消解毒性。 economic integration 经济一体化