6th April 2021
The payment (or avoidance) of corporate taxes is one of the most pressing issues in global economics at the moment.
With fiscal deficits and national debts soaring in the aftermath of the pandemic, governments are scrambling to engineer increased tax revenues to help cover the cost of their fiscal support programmes.
The United States under Janet Yellen has announced plans to establish a global minimum corporation tax rate and France and Germany have already fallen in behind the initial proposals.
Pressure may be mounting on tax havens and countries with ultra-low corporation tax rates such as Ireland to move towards a minimum effective rate of corporation tax (paid on profits) of perhaps twenty per cent.
No one should assume that multi-lateral reform of corporation taxes will be straightforward especially as many countries have relied heavily on cutting these taxes as a way of driving inflows of foreign direct investment.
The Global Corporate Tax Rates Table can be found here
Read: Financial Times: Global corporate tax deal edges closer after US backs minimum rate
More here from the Irish Times: Ireland’s low corporate tax regime will be undermined if Biden proposals pass
The IMF has called for higher wealth taxes to help address increasing inequality caused by the crisis
Here are some relevant tweets on the issue:
Is Janet Yellen's global minimum corporate tax rate actually feasible?
— Ben Chu (@BenChu_) April 7, 2021
🌎💰
Some analysis from me for @indypremium 👇https://t.co/Yr8lMY9tVl
Why do we need a minimum corporate tax, you ask? pic.twitter.com/opDmdbeUEe
— Gabriel Zucman (@gabriel_zucman) April 5, 2021
IMF Chief Economist @GitaGopinath: We have long been in favor of a global corporate minimum tax, but the issue needs further study. https://t.co/lH43Qqz7Fx #WEO pic.twitter.com/tVRteoaFjB
— IMFLive (@IMFLive) April 6, 2021
Are less developed countries more exposed to multinational tax avoidance? Learn more in an open access article from the @WorldBank Economic Review. @LudvigWier https://t.co/qmbyQxDMgw pic.twitter.com/9DqdRbWpWm
— Oxford Economics (@OUPEconomics) April 6, 2021
Breaking News: Treasury Secretary Janet Yellen on Monday argued for a global minimum corporate tax rate, as the Biden administration looks to fund its infrastructure plan and prevent companies from shifting profits overseas to evade taxes. https://t.co/CHzXb1RFEZ
— The New York Times (@nytimes) April 5, 2021
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