Gita Gopinath’s opinion piece on how fiscal policy in many countries is on an unsustainable path (Opinion, October 27) suggests a minimum corporate tax rate and a more efficient wealth tax is the way to achieve more balanced public finances.

It is a fact that Switzerland, as a confederation, is governed in a decentralised way with internal competition, including in areas such as taxation. Despite this, there is a significant difference in the tax structure between the cantons in Switzerland, and Switzerland is, despite this, an exceptionally successful country on several important and decisive measures.

It is also a fact that Norway recently increased its wealth tax and several wealthy Norwegians as a consequence decided to leave Norway.

My point is that every economic decision has consequences that need to be carefully evaluated by asking “and then what”. Remedies may differ from country to country. What I would suggest, instead of a one-size-fits-all solution, is that it should be constitutionally determined that a sitting government was automatically removed from power with a ban on holding public office for a given period thereafter if the public debt and the annual deficit on the public finances exceeded a certain level.

It would create accountability and flexibility to prevent the inappropriate public capital allocation we have witnessed for too long.

Glenn Nielsen
Copenhagen, Denmark