A Study Of America Promotion Of Global Tax Governance From A Transnational Policy Diffusion Perspective

Economy and politics of the world are complex and dependent mutually.In an era of transnational production and global capital market,tax system of different countries is dependent mutually highly.Tax haven is separate from tax jurisdiction of governments.Tax evasion is a troublesome problem of governments for years.All countries of the world need international cooperation urgently to cope with this tax evasion problem.Although this cooperation may bring welfare for the whole system,single judicial district may betray the cooperation.International tax cooperation is often compared to be “prisoner’s dilemma”.In theory,tax competition and cooperation is a zero-sum game.In reality,all countries care about relative gains;policy game among different countries is not a zero-sum game.The author tries to use market power theory to analyze policy diffusion mechanism preferred by entity.In transnational tax policy diffusion,the precondition is market power as the core independent variable and the dependent variable is the result of policy diffusion.On the basis of summarizing and analyzing the existing policy diffusion mechanism,use the latest achievement of academic research.The routes of diffusion mechanism can be:interest,rights,ideology and recognition.It is thought by the author that the four diffusion mechanisms are intermediate variables from independent variable to dependent variable.In case of meeting the precondition of market power,policy diffusion can be realized by intermediate variables.In different cases,diffusion process and route are different.There are one or multiple diffusion routes in diffusion process.The functions of market power as the core variable of tax policy diffusion are tested.In this case research,market resource,capacity and will are used to analyze market power of entity.By comparing and analyzing the market power of America and European Union,empirical research is done on the fact that America utilizes its powerful market power in tax policy to implement tax policy diffusion mechanism.To verify result thoroughly,the cases chosen in this paper are in chronological order of American government.The independent variable market power is used to analyze the functions of market power in policy diffusion during the governing years of Clinton government,Bush government,Obama government and Trump government.By tracking process,test the policy diffusion mechanism of the main actor America and explain dependent variable of global tax policy diffusion.European Union is the second largest actor of tax governance in the world.By researching the functions of the main actor America in global tax policy diffusion,this paper analyzes tax policy of European Union in the same period and makes comparative research in case.Examines the influence and role of the independent variable market power in international tax governance in the United States as a large country and verifies the results of market power driving tax policy diffusion through four mechanisms of mediating variables.