Outcome of major OECD corporate Tax Reform is Uncertain

Recommendable! This OECD tax reform seems to be a globalist monstrosity! Government greed knows no bounds!

Tax competition among countries is very important to keep government greed and Big Government in check!

This Big Government agenda also includes redistribution of corporate profits among countries!

What is the euphemism used here: tax harmonization!

The targeting of large corporations for their allegedly tax evading maneuvers across borders is one of those favorite political games!

The most prominent component is the uniform 15% corporate tax rate! It is supposed to eliminate or significantly reduce tax competition among countries. However, this is almost doomed to failure, e.g. there are too many countries and the incentives for individual countries to circumvent are too high.

Any economist knows that the tax rate is the least important aspect of a tax system. Much more important is how is income defined and how are tax laws enforced etc.

"The OECD tax reform could be seen as the final act of efforts to harmonize international corporate taxation. Just a few years ago, there was a consensus that key challenges such as the taxation of digital companies with no presence in a country should be addressed within the existing system. Now the OECD, with the cooperation of the G20, is preparing to create an entirely new tax code. This restructuring primarily favors large countries, for example by classifying tax competition between countries as fundamentally harmful. ...
However, the agreement reached by nearly 140 states in July 2021 disguises numerous practical problems that are already creating uncertainty, even before it enters into force. For example, the implementation of the so-called Pillar One has stalled seriously. Under this pillar, profits are to be redistributed to countries that don’t have the right to tax these profits under current tax standards. ...
Behind closed doors, there is already speculation about whether Pillar 1 will ever be implemented ‒ not least because the fate of the multilateral agreement in the USA is uncertain. An agreement without the US, the most important country of domicile for large digital companies, is pointless."

Outcome of OECD Tax Reform Uncertain - Avenir Suisse Arguments for streamlined implementation without government policy experimentation

The imaginary federal income tax gap of several hundred billion dollars

Our lifelong busybody career politicians are always looking for opportunities to raise government revenues for their spending orgies!

Thus, it is no surprise that government administrations and politicians claim for many years there is a huge gap between what is owed to the government and what is actually paid to the government in form of taxes, fees etc.

This alleged gap is a fantasy! The usual scapegoat are businesses and self employed!

Make no mistake, if the demented and senile 46th President would really try to close this fictitious tax gap, the economy will go into recession! Jobs will be lost. Investments postponed or cancelled, you get the picture! 

Here is one of the latest examples, a May 2021 issued report by the U.S. Department of the Treasury:

The-American-Families-Plan-Tax-Compliance-Agenda.pdf

In the Executive Summary of the report, we read:

"This report describes the President’s tax compliance initiatives that seek to close the “tax gap”—the difference between taxes owed to the government and actually paid. According to Treasury analysis, the tax gap totaled nearly $600 billion in 2019 and will rise to about $7 trillion over the course of the next decade if left unaddressed—roughly equal to 15% of taxes owed. These unpaid taxes come at a cost to American households and compliant taxpayers as policymakers choose rising deficits, lower spending on necessary priorities, or further tax increases to compensate for the lost revenue.

The magnitude of the tax gap means that compliance initiatives have the potential to raise substantial revenue, but these reforms also improve tax progressivity and economic efficiency. While roughly 99% of taxes due on wages are paid to the Internal Revenue Service (IRS), compliance on less visible sources of income is estimated to be just 45%. The tax gap disproportionately benefits

high earners who accrue more of their income from non-labor sources where misreporting is common. Further, the tax gap imposes distortions because of the resources some expend to avoid paying taxes and the incentives created to shift economic activity into certain areas where tax liabilities can be illegally evaded. ..."