Produced By: Marla Dukharan
January 21, 2022
Late last year the USA, EU, and OECD convinced 136 countries (except Nigeria, Kenya, Pakistan, and Sri Lanka) to agree to implement a 15% Global Minimum Tax. In a world where countries are encouraged to improve their statistical infrastructure in order to support evidence-based policymaking, there appears to be no empirical research done to justify the introduction of this global minimum tax in the first place, nor what the appropriate tax rate and applicability threshold should be. It appears that simply the universal desire for more fiscal revenue and the negotiation process itself have given rise to an arguably arbitrary 15% tax on multinational corporations with revenue over EUR750 million, which is expected to earn USD150 billion in additional global tax revenues annually, according to the OECD. But who will earn this revenue?
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