A World Tax Revolution
Only six months after his mandate, Joe Biden starts to promote global changes. He asked for a Tax Reform, but on the global level, where the Corporation Tax would be elevated to the 21% all around the world. All this reformist and global cooperation attitudes are unlocking the conversations with the Organization of Economic Cooperation and Development, they design the global taxes rules.
The main reason for this tax change is to avoid the famous tax havens and the tax avoidance from the biggest enterprises.
It is calculated that countries stop entering about 206.000 million of euros every year because of this profit diversion to countries that are considered tax havens. For example, Spain stopped entering about 4.3000 million euros.
Also we need to know that these last years there was a race to the bottom where the OECD countries the taxes dropped from 32.2% to 23.2% between 2000 and 2020.
The main problem on this tax model is the difficulty to make all the countries follow this rule, and what to do if somebody doesn’t follow it. But we need to know that about 140 countries are supposed to participate in this tax change.