The OECD Plan To Raise Taxes Is Based on Faulty Data

Adam N. MichelFollowing decades of international debate over how to rewrite the taxation of multinational businesses,nearly 140 countries, including the Biden administration, agreed to an outline for a  new global tax system. Since then, the proposal has been met withcriticism andskepticism from Congressional Republicans and other critics who argue that it will harm American taxpayers and infringe on U.S. sovereignty. Most recently, ten House Republicansproposed stripping U.S. funding for the Organisation for Economic Co ‐​operation and Development (OECD), the international organization facilitating the reforms.The proposal includes two “pillars” which build on decades of past work carried out by the OECD. The first pillar includes a new system for allocating the right to tax certain types of corporate income between countries based on where consumers are instead of where businesses are located. The second pillar consists of a  series of new rules that enforce a global minimum tax of 15 percent. Pillar Two is currently being adopted by countries across the EU, among others. Pillar One is less developed due to ongoing disagreements over dividing taxing rights.The OECD ’s work is often reported as a technocratic solution to increase efficient and fair tax collection. However, the OECD is better thought of as an aspiringinternational cartel ofrevenue ‐​maximizing tax collectors intent on one thing: higher taxes. The last decade or more of OECD work rests on th...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs