Ending the race to the bottom: Why the UK should seize the opportunity to support a global minimum corporation tax
Article
Since taking office, US President Joe Biden has put forward a bold plan for international cooperation to stop tax avoidance by multinational companies. This briefing paper argues that the UK should support the proposal for a global minimum corporation tax.
The UK has every reason to support the Biden administration's plan for a global minimum corporation tax, the paper argues, and for it to be set at a minumum rate of 21 per cent - higher than the 15 per cent reportedly being considered by the G7.
Agreement on this would prevent large multi-national companies unfairly shifting their profits to tax havens to avoid paying taxes on the same basis as smaller UK competitors.
If set at 21 per cent, the rate originally proposed by the US, it would raise £14.7 billion for the UK exchequer - more than would be required to fix the NHS funding shortfall. It would not increase taxes for other UK-based companies but would ensure they face a more level playing field with some of their largest competitors.
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