Wednesday, June 09, 2021

G-7 Corporate Tax Agreement: Bullying at its worst

Recommendable! This is bullying at its worst!

If businesses would form a cartel to raise the minimum price, they would be sued by government!

"Leaders of the G-7 countries agreed on the weekend to pressure other countries to impose corporate tax rates of at least 15 percent. They also agreed to reallocate the earnings of some multinational corporations if too much was deemed to be in low‐​tax countries. ...
However, ... look at the data. It does not show eroding or insufficient revenues overall.
The chart below shows corporate tax revenues as a percent of GDP for the G-7 countries from 1965 to 2019. Despite huge increases in cross‐​border investment, the rise of the Internet, and the mobility of modern industries, corporate tax revenues have hovered in roughly the same range [2-3%] for half a century, although with fluctuations from economic booms and busts. The data is from the OECD. ..."

G-7 Corporate Tax Agreement | Cato at Liberty Blog



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