The increasing economic openness experienced by the globalization of independent economic systems has created problems as well as opportunities that cross formal borders in new and unexpected ways. Economies that had been autocratic and closed have been opened up and are integrated into the truly world economy. A global capital market has come into existence, allowing huge movements of capital and generating a “world interest rate.” As the world economy becomes more integrated, externalities became international in scope, creating the need for some type of supranational public-intervention apparatus. In line with international organizations like the World Trade Organization and the World Health Organization, in this article the author suggests the need for a World Tax Organization to deal with the cross-border effects of national tax policies.
