State Tax Competition ("Guerra Fiscal"): comparative study of the Brazilian and Swiss tax collection power and revenue sharing systems

Brazil has a very peculiar tax collection power distribution and revenue sharing system, that splits three way the consumption tax, giving taxation powers over goods circulation to the States, over services to the Municipalities and over production to the Union.

The Brazilian State circulation of goods tax, whose regulations require unanimity to incentives and benefits concessions, even though the 27 Brazilian States development state are disparate, generates a "fiscal war" / State competiti...