New paper from @gabriel_zucman cited by @Ed_Miliband showing that the idea that companies are mobile is wrong. They shift profits, but it’s much harder to shift jobs/factories - so govts shouldn’t be so focused on cutting corporate tax rates. http://gabriel-zucman.eu/files/TWZ2018.pdf … @alexcobham
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To my mind: The main point in this article is the 40% profit-shifting figure. It should wake up the entire global policy world.
NB: 40% of *foreign* profits of multinationals = 5% of corporate profits overall (85% corp profits are in their home jurisdictions) Estimated revenue at stake (from the paper) is <1% of total tax revenues of govts. The global policy world should make sure it asks '40% of what?'!
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40% of multinational profits is a relevant figure, because multinationals = the key winners of globalization. So the very winners pay less in tax while others pay as much or more. This is unlikely to be sustainable, neither economically nor politically.
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Yes its relevant and it makes sense as that's your methodology. But people will misunderstand it. Expectations run high!pic.twitter.com/87854SybKZ
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1% is an absolutely enormous sum.
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Sure. But 40% sounds like a lot more! The estimates by
@LudvigWier@TTorslov@gabriel_zucman are right in the ballpark of the@OECDtax $100-240bn estimates which informed the BEPS reforms - 5 more replies
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