Edmund Burke once said that “No government ought to exist for the purpose of checking the prosperity of its people or to allow such a principle in its policy”. In contrast to this principle, however, in June and July finance ministers and central bankers met in London and Venice to check the prosperity of “their” peoples and of the entire planet by proposing a universal corporate tax rate of at least 15%. According to media reports, the words “at least” were added on the insistence of the EU ministers.
Make no mistake: this is not a proposal for a flat corporate tax, but rather for a minimum tax. And the idea is anything but new. The novelty is that it comes from G-7, on top of the proposals in favour of progressive taxation by the IMF Managing Director, Ms. Kristalina Georgieva, who was present at the London meeting.
The proposal comes under the banner of “Shaping a Safe and Prosperous Future for All” and is supported by arguing that it would create a “leveled playground for all”, build “a strong, sustainable, balanced and inclusive global economic recovery” and “tackle climate change and biodiversity loss”.
More see in the publication by the The Institute for Research in Economic and Fiscal Issues