Joe Biden’s crisis and the election campaign for the presidency of the United States have accelerated: the big nations have never been close enough to accept the world’s minimum corporate tax rate (IS). The matter will be on the agenda of the G7 Finance Ministers’ Meeting, a study published in London on Friday, June 4 and Saturday, June 5, published on Tuesday, June 1.There is June provides an estimate of the amounts that the EU (EU) can recover if such an agreement is reached. “Depending on the views and the rate used, the EU tax revenue associated with this tax will increase by 13% to 50%”, Gabriel Jugman, economist at the University of Berkeley (California) and director of the European Taxation Laboratory, summarizes the beginning of the study.
Hosted by the Paris School of Economics, the laboratory, created in March 2021, is responsible for providing research on taxation and ideas on the subject, following a call for European Commission projects (which are funded). This is urgent: as the Covid 19 epidemic expands the worst public deficit, states are exploring all avenues to replenish public treasures and put an end to tax competition in the post-crisis period.
For now, multinational corporations are free to choose the country they want to tax, which would be favorable to those with lower taxation or tax havens. But the discussions, which have been held since 2019 with the help of the Organization for Economic Co-operation and Development (OECD) covering 139 countries, aim to impose a common minimum rate on them and adjust the tax to suit the profits available in each country. Country, regardless of the location of headquarters.
In this context, the laboratory’s study focuses on what its researchers call a “financial deficit,” the difference between the amount a company pays in taxes today and the amount it would pay if subject to the minimum tax rate. Every country where it operates. She draws three scenes. First, an agreement comparable to the one discussed by the OECD would establish a minimum rate of 25% for 2021. “In this case, each European country will collect a deficit for each of its multinationals.”, Mr. Juchman explains that the programs on the taxation of the rich are, in the United States, the program of the Democrats.
“Creating EU Taxation”
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