They accomplished this by providing a framework for interests within a group of high tax states to create a cartel that would channel competition in tax policy away from areas where those states had a competitive disadvantage and toward areas in which they had a competitive advantage.

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The energy and climate change select committee has been examining the draft energy bill, which will establish this framework, and many witnesses have warned that the proposals will in fact raise the cost of capital, hamper competition and deter investment.

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