Noncooperative tax policies lead to global inefficiencies and environmental damage.
The article explores how taxes and public spending in different countries can affect global well-being. By looking at how governments can influence world market prices, the researchers found that current tax levels on harmful goods are too low, income taxes are too high, and too much money is spent on public goods. They suggest that if countries work together on tax and spending policies, it could lead to better outcomes for everyone.