After decades of resistance by rich nations, African governments successfully pushed for the United Nations to lead on international tax cooperation. All developing countries and fair-minded governments must rally behind this initiative.
Read Jomo Kwame Sundartam’s article
The Secretary-General of the United Nations (UN) has published an advanced unedited version of a game-changing report. It outlines the options for strengthening the inclusiveness and effectiveness of international tax cooperation and presents three possible roads ahead, all under the auspices of the UN. Eurodad welcomes this truly historic moment in international tax cooperation.
and also read Eurodad’s report on the same topic:
Sub-Saharan Africa is one of the most unequal places in the world, with significant levels of social, gender, and income inequality. Several countries in the region have a tax structure that is heavily weighted towards consumption taxes, which can be regressive and inflict a significant burden on those with low and middle incomes. Implementing progressive tax systems, whereby those with higher earnings pay a larger share in taxes, is one way through which governments might optimize the impact of tax revenue on reducing inequality. The adoption of a wealth tax may facilitate wealth redistribution in Sub-Saharan African nations and could help bridge the inequality gap in the region. High statutory wealth tax rates of between 5-8% are needed in order to have an effective tax rate of 3-5%.
Read the paper by South Centre
I explained back then how tax policy was supercharging the accumulation of obscene fortunes in America. Policy makers, I noted, had lifted the lid on wealth accumulation by decreasing taxes on inheritances and income from capital. That policy failure would go on to become substantially worse in 2017 with the passage of the Tax Cuts and Jobs Act.
Others would see this same ominous trend. In an interview with CNBC, several experts recognized the distinct possibility the world would have its first trillionaire by 2039, the year CNBC would turn 50.
Read the article by ‘Veteran tax attorney Bob Lord, an Institute for Policy Studies associate fellow, is currently serving as a senior advisor on tax policy for Patriotic Millionaires.‘
At the end of last month, the annual ECOSOC Special Meeting on Tax was held at the UN. This constituted the first intergovernmental debate on international tax matters following the historic approval of a new UN General Assembly resolution at the end of 2022. The resolution, which was adopted by consensus, includes the decision to “begin intergovernmental discussions in New York at United Nations Headquarters on ways to strengthen the inclusiveness and effectiveness of international tax cooperation”. The Africa Group, which had tabled the resolution, also called for the process to deliver a new UN Convention on Tax.
Zucman and Wier published a new study on what multinational corporations did with their profits made outside their own country. In 2019 one trillion USDollars went to tax havens!
They also note that multinational profits grew faster than global profits!
Read the interesting study!
The developed countries’ commitment to provide climate finance to the developing countries has remained unfulfilled. The Climate Finance Withholding Mechanism (CFWM) is a potential solution for addressing climate finance needs of the developing countries. The CFWM adopts the well settled “withholding mechanism” under the tax laws to provide a steady flow of funds to the developing countries.
Read South Center Proposal: NEW Tax Cooperation Policy Brief: Climate Finance Withholding Mechanism (mailchi.mp)
An annual wealth tax on the world’s richest could raise 1.7 trillion US$
Read the report
President Gustavo Petro’s government plans to raise $20 trillion Colombian pesos through a hyper-targeted tax on less than one percent of the country’s top earners. Other nations should take notice.
Pandemics, wars and recessions do not exempt states from human-rights commitments. They must tax multinationals and the richest more to protect the most vulnerable. (Magdalena Sepúlveda)
Read the article
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