Global Corporate Tax

https://www.rozen-bakher.com/forum/2021/07/08/global-tax

Published Date: 8 July 2021. Latest Update: 04 April 2022

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Global Risks by Dr. Ziva Rozen-Bakher

Global Risks Aims to Stimulate Thinking ‘Out of the Box’ about Ongoing Global Problems that Have No Clear Solutions.

Global Risks by Dr. Ziva Rozen-Bakher https://www.rozen-bakher.com/forum

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Dr. Ziva Rozen-Bakher

Researcher in International Relations with a Focus on Security, Political and Economic Risks for Foreign Direct Investment (FDI) and International Trade

CV

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Do we need a global corporate tax for global prosperity?

How it can be implemented against sovereign countries that oppose global corporate tax?

For many years, a low tax regime has become a location factor that encourages Foreign Direct Investment (FDI). For some countries without natural resources, it serves as their national competitive advantage compared to other countries. However, from the country's perspective, low income from corporate tax is like a person with a low salary that has money only for basic needs. Thus, a country with a low income from corporate tax has a problem allocating a budget for the development of public infrastructure or public services. Paradoxically, many firms and individuals are rich in such a country, but the country is relatively poor, especially in relation to public needs.

If we assume that global corporate tax will benefit global prosperity, especially in relation to public needs at the country level, then is it possible to "force" countries to implement it? If not, will the global corporate tax be effective if many countries raise their corporate tax rates to match the global rate, while other countries keep their tax rates low? Will it lead to the creation of high-tax regimes versus low-tax regimes that may backfire on the global corporate tax? Perhaps the solution will come from the implementation of the global corporate tax.

Discussion on this Topic in the Research Literature

• Global distribution of revenue loss from corporate tax avoidance: re‐estimation and country results - Cobham - 2018 - Journal of International Development - Wiley Online Library

• A critique of the Laffer theorem’s macro-narrative consequences for corporate tax avoidance from a Global Wealth Chain perspective: Globalizations: Vol 18, No 2 (tandfonline.com)

• Statutory corporate tax change and the stock market returns: the global experience: Applied Economics Letters: Vol 28, No 6 (tandfonline.com)

• Corporate tax avoidance practices of multinationals and country responses to improve quality of compliance | Western Sydney University ResearchDirect

Latest News about this Topic

• Poland, Sweden, Estonia, Malta block EU minimum corporate tax deal | Reuters

• Global tax deal seeks to end havens, criticized for 'no teeth' | Reuters

• Ireland agrees to global tax deal, sacrificing prized low rate | Reuters

• Global tax deal inches closer as holdout Ireland agrees to sign up (msn.com)

• Ireland frets about losing its ‘sacrosanct’ low-tax regime | Financial Times (ft.com)

• Dutch government scrambles to keep Shell in Netherlands - News Azi

• G20 greenlights global corporate tax rate of at least 15% to stop 'race to the bottom' | Euronews

• Global minimum tax spurned by 9 countries, complicating new deal | Fox Business

• A global corporate-tax deal takes shape | The Economist

• G20 economy ministers endorse global tax deal

• Global minimum corporate tax: 130 nations to support U.S. proposal (cnbc.com)

• G-7 Tax Plan: What We Know About the Global Corporate Tax Deal - WSJ

• A Global Minimum Corporate Tax Is a Bad Idea Whose Time Hasn’t Come (foreignpolicy.com)