3 ms·
Raising corporate taxes is popular, but I suspect the end result of this proposal would be to lower corporate taxes. First, countries would reduce their taxes
by yyyk 5y ago
Raising corporate taxes is popular, but I suspect the end result of this proposal would be to lower corporate taxes.
First, countries would reduce their taxes to the minimum 15% based on the same dynamics we had until today (note that US's tax is higher). Later, countries would find ways to return the tax (not difficult when one could simply 'fail' to collect, or give 'investment aid' etc.).
IMHO, the importance of the treaty is with regards to establishing common standards. Raising corporate rates would require an additional vehicle.
- CrazyStat 5y agoI don't see this resulting in lower taxes. Countries with higher corporate tax rates have their current corporate tax rates for a reason, and this makes them more competitive (by setting a higher floor) which means less incentive to lower the rate.