This year, nations have a historic opportunity to end the race to the bottom in corporate taxation, restoring government resources at a time when they are most needed. Through the auspices of the Organization for Economic Cooperation and Development and the Group of 20 Inclusive Framework, 139 countries are working toward fairer distribution when it comes to which countries receive corporate tax revenue and the establishment of a globally agreed-upon minimum tax. This minimum tax would put a floor on tax competition and ensure corporations pay their fair share of tax.
With a global minimum tax, instead of competing on rock-bottom corporate tax rates, competition will happen on a more level playing field, based on real economic factors such as innovation and efficiency, helping the world’s citizens along the way. Instead of being fearful of tax competition, governments will focus on improving productivity and growth outcomes, creating positive spillovers regardless of where the innovation occurs.
Read the full article on The Washington Post