Document Type
Blog Post
Publication Date
4-19-2024
Abstract
There has been a massive tax competition among international society for the last couple of decades. Between 1985 and 2018, the global average statutory corporate tax rate fell from 49% to 24%. Some countries competed as tax havens and presented extremely low tax rates to foreign corporations which resulted in multinational enterprises (“MNEs”) shifting “close to 40%” of profits to tax havens. This raised concerns that such a trend is a “race to the bottom” where tax havens will have minimal tax revenue due to such low tax rates whereby MNEs pay less and less tax. During the same period, countries all over the world have seen huge budget deficits and it is projected that by 2030, most of the Organisation for Economic Co-operation and Development (“OECD”) members will undergo a budget deficit—as much as 8.7% of GDP in Japan, for example. Thus, countries clearly need more money to sustain their system and existence.
This post was originally published on the Cardozo Journal of Equal Rights and Social Justice website on March 29, 2024. The original post can be accessed via the Archived Link button above.
Recommended Citation
Lim, Joon Young, "Will the OECD’s Two-Pillar Solution Better the Global Economy?" (2024). ERSJ Blog. 79.
https://larc.cardozo.yu.edu/ersj-blog/79
