6. Limit Taxation. Taxes reduce the incentives to work, save, and invest; thus reducing the supply of labor and capital, and thereby lowering the amount of investment and production. For every tax, there is a revenue maximizing rate; and when that rate is exceeded, government is left with less, rather than more, revenue. Taxes also reduce individual liberty by taking away the freedom to keep the fruit of one’s labor and capital.

European Union Tax Rate Harmony: An Unattainable and Detrimental Goal
by Phillip O. Figura
NEW ENG. JOURNAL OF INT’L & COMP. LAW

Globalization, Tax Competition, and the Fiscal Viability of the Welfare State
by Philipp Genschel
May 2001
Philipp Genschel is a research fellow at the Max Planck Institute for the Study of Societies in Cologne.