Unit 4 Macro: Business Taxes - A Race to the Bottom?

There has been much controversy and debate recently about the ability and incentives of transnational corporations to cut their liability to pay taxes on profits. Starbucks is one example, Amazon is another.  This Financial Times video offers a useful summary of some of the issues. Many governments have been shaving their corporation tax rates in a bid to attract inward and domestic investment. Are they engaged in a damaging race to the bottom? Latest data suggests that companies paid a total of £77bn in UK corporation tax in 2012, 14.2% of total tax receipts. 

Starbucks profits rise 

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The Economist Draws Tax

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