ICT revenues worldwide are declining by as much as $240 billion each year. By transferring profits to tax havens. Implementation of the global property and climate tax and minimum CIT rate would generate $695 billion. Annually – refers to the report of the Polish Economic Institute.
As we read in the PIE report “Global Taxation in the Post-COVID-19 Era,” Global revenue from communications and information technology is declining by as much as $240 billion each year. Due to the transfer of profits to tax havens. “The world’s richest people transfer $7.6 trillion to foreign accounts to avoid tax authorities,” she wrote.
CIT Global Taxes – PIE Report from June 2021.
According to the report, the implementation of the global wealth tax will save $289 billion. Annually, the global climate tax – $ 279 billion. Annually, the global minimum rate of CIT – 127 billion dollars. annually.
It was noted that the epidemic had severely strained health care systems and public budgets. According to the data of the International Monetary Fund, quoted by the PIE, the deficits in the world’s largest advanced economies increased by about 10 points. Compared to 2019
“At the same time, it is becoming increasingly difficult for states to collect taxes. The largest global corporations commonly use optimization mechanisms, and the richest often hide their income and assets in tax havens.” – refers to the director of the Polish Economic Institute, Piotr Arak.
In his opinion, the answer is global taxes – their implementation will allow to tighten tax systems, increase budget revenues and “eliminate tax-exempt passengers”.
$700 billion in new taxes
The report shows that the acceptance of three global taxes – at relatively low rates – It will generate $695 billion a year. “These funds, collected and distributed at the national level, will improve the quality of public services. There will be, among other things, enough to hire an additional 55 million nurses worldwide“- Evaluation.
The authors of the report pointed to the problem of corporate tax avoidance by international companies. “Common practice is to shift profits to tax havens” – he emphasized.
Amazon, which recorded record sales of 44 billion euros in the European Union in 2020, showed a loss of 1.2 billion euros. As analysts point out, this allowed him to avoid paying income tax.
According to łukasz Błoński, PIE . Strategy Team Analyst “We are already on the verge of reaching a global compromise on this issue.” – Profits of multinational corporations are subject to tax at points of sale; Soon, consensus may be reached on the minimum global CIT rate (15%) for the largest global companies.
Economic disparities
As mentioned, in 2019 the richest 10 percent. Of the world’s population own 85 percent. all global assets; In the year 2020 alone, the wealth of billionaires increased by more than $5 trillion. Up to 13 trillion dollars
Tax regimes, which have lowered taxes significantly in recent years for the wealthy in recent years and have very limited possibilities to deal with the full range of activities aimed at tax avoidance, lag behind increasing wealth at this pace.
She added that the richest people poured $7.6 trillion. to foreign accounts in order to escape the tax administration.
Property tax will affect 0.01 percent. The richest citizens in the world. Taxing this group at just 0.5 percent on assets over $10 million and 1.5 percent on assets over $1 trillion could generate $289 billion annually. – He calculated it in the PIE report.
Analysts also pointed to additional taxes on polluters. “While some countries (…) see that they are working to reduce carbon dioxide emissions, others do not seem to care, and even treat their loose environmental standards as a competitive advantage” – he noted.
According to PIE, the solution will be the introduction of a global climate tax, “which will be prepared taking into account the diverse socio-economic situation of individual regions”. According to the authors of the report, this will allow, on the one hand, to accumulate the necessary funds to combat the climate crisis, and, on the other hand, to adapt the tax instrument to the needs and capabilities of individual countries. “Such a solution can save 278 billion dollars a year” – this is calculated.
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