Nobody wants to hear about higher taxes. It’s an unpopular and counterintuitive notion to those who believe taxation is a call of death for economies looking for growth.
But the world is different now, which is why United States Treasury Secretary Janet Yellen’s call for a minimum corporate tax to stop the so-called race to the bottom is an interesting one.
The G20 corporate tax average went from 33 per cent in 2000 to roughly 27 per cent in 2020. For Organization for Economic Co-operation and Development (OECD) countries, the average went from 33 to 23 per cent.
Over the last two decades, depending on who was in charge in any given country, the temptation to lower corporate taxes and increase foreign direct investments at times has been overwhelming.