February 23, 2009 7:39AM

How European Governments Hate Low Taxes

The European Union held a summit over the weekend at which the assembled politicoes announced a variety of steps to increase regulation of European financial markets. But that isn’t all.

Reports the Daily Telegraph:

The EU communique also called for punitive action against tax havens. “A list of uncooperative jurisdictions and a toolbox of sanctions must be devised as soon as possible,” it said.

Ah, so now we see what is really important to European governments: squeezing more money out of their peoples.

As Cato’s Dan Mitchell has oft pointed out, competition among taxing jurisdictions is good for everyone other than governments. Tax havens, so‐​called, are an important tool for promoting such competition. Similar efforts are underway in the U.S. with efforts to tax the internet, for instance.