We publish here a statement made to the FISC Subcommittee of the European Parliament on 19 April 2021 by Sol Picciotto. coordinator of the BMG. It outlines how a strong global corporate minimum tax could benefit almost all states, including all EU member states, by increasing corporate tax revenues and ending the beggar-thy-neighbour race to the bottom in corporate tax rates.

It urges all EU members and the EU as a bloc to support the proposals from the Biden administration for such a strong tax, at a minimum rate of at least 21%. Wide support across the world could be ensured by modifying the OECD proposed global anti-base-erosion tax (GLOBE), to allocate tax rates fairly between states based on a formula reflecting each multinational’s real activities in each state, as outlined in our proposal for a minimum effective tax rate for multinationals (METR). A new paper on the METR includes economic impact assessments for countries, showing that almost all would benefit, losses would be limited to a few with average per capita GDP over $40,000.

The statement also suggests that implementation by the EU should follow the dual approach proposed by the Commission in 2018, applying this formulaic minimum tax to non-EU countries while introducing within the EU a common consolidated corporate tax base (CCCTB).

Further details of the hearing, and a video of the event, are available on the Parliament website.