Faced with the economic crisis, governments must not give tax breaks and bail out businesses and the richest must be called on, economists like the Nobel Prize winner Joseph Stiglitz and Thomas Piketty plead on Monday. a coalition of NGOs, including Oxfam, and unions.
The Covid-19 pandemic has resulted in an increase "in public spending to finance health, income maintenance and employment, but this economic burden must not weigh disproportionately on disadvantaged groups and countries", plead these economists, who participate in the independent commission for the reform of international corporate taxation
(Icrict)
.Strengthen "tax coordination efforts"
In this perspective, "corporate tax cuts" to stimulate reconstruction investments "are neither economically efficient nor socially desirable," says Icrict, even as global tax revenues are already going to fall with the drop. consumption and unemployment. We must not encourage "a race to the lowest price" for corporate tax rates aimed at attracting foreign investment "and, on the contrary, strengthen" fiscal coordination efforts ", with" an effective minimum tax rate on global profits of multinationals of at least 25% ”, pleads Icrict.
Concerning the companies which have benefited from the crisis, for example in the pharmaceutical or electronic commerce sectors, it would be necessary to tax their “excessive profits”, by modulating the tax rate according to the size of the companies.
A warning against "rescue plans"
The commission also warns of "bailouts", which "destroy fair market conditions" and "are particularly harmful to developing countries, which do not have the resources" to put them in place. State support should be prohibited for companies with their headquarters or subsidiaries in tax havens because they do not finance "the social contract".
Icrict also demands that the rich take "a proportional share of the economic burden of the pandemic", with "effective taxation of wealth, and in particular offshore wealth". For this, economists demand "data on offshore wealth in order to allow all jurisdictions to adopt effective progressive wealth taxes on their residents and to be able to better control the effective tax rates on taxpayers on the most higher ".
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