G7 Tax Agreement: IPPR says countries can still go further to end ‘race to the bottom’ on tax
Think tank welcomes ‘much-needed’ move to a global minimum corporation tax rate of at least 15 per cent, but urges world leaders to go further
This week an IPPR report said that a global minimum corporation tax rate of at least 15 per cent could raise £7.9 billion for the UK, but warned this rate would not be enough to end the race to the bottom on tax, while also foregoing almost half the potential tax revenue of the original Biden plan for the rate to be set at 21 per cent.
IPPR says that a 21 per cent rate would both be fairer, do more to prevent multi-national firms from offshoring their profits to tax havens and raise £14.7 billion for the UK – enough to fund the rebuilding of the NHS and care system.
George Dibb, head of the IPPR Centre for Economic Justice, said:
“This agreement is a much-needed step to create a fairer tax system for all and end the use of tax havens. Agreement on a minimum tax of at least 15 per cent is welcome, but the level needs to be set higher to truly end the race to the bottom on tax.
“With the UK corporation tax rate set to rise in 2023, the UK government should be demonstrating leadership and aiming for a global minimum rate of 21 per cent or higher with the ultimate goal of around 25 per cent.”
Robin Harvey, Digital and Media Officer: 07779 204798 firstname.lastname@example.org
NOTES TO EDITORS
- The IPPR paper, Ending the Race to the Bottom: Why the UK should seize the opportunity to support a global minimum corporation tax by George Dibb, Carsten Jung, Shreya Nanda and Henry Parkes, is available for download at: http://www.ippr.org/research/publications/ending-the-race-to-the-bottom
- IPPR calculated the £12 billion annual investment needed to ‘build back better’ in the NHS and social care in the report The State of Health and Care: The NHS Long Term Plan after Covid-19 by Chris Thomas and Parth Patel. Available to download here: https://www.ippr.org/research/publications/state-of-health-and-care
- IPPR is the UK’s pre-eminent progressive think tank. With more than 40 staff in offices in London, Manchester, Newcastle and Edinburgh, IPPR is Britain’s only national think tank with a truly national presence. www.ippr.org
Latest News from
IFS - Response to latest ONS public sector finances data22/06/2021 10:35:00
Isabel Stockton, Research Economist at the Institute for Fiscal Studies responded to the latest ONS public sector finances data
IPPR - Make Aberdeenshire a European renewable energy centre of excellence, urges locals in climate citizens’ jury22/06/2021 09:35:00
Aberdeenshire residents, from city and shire, want to use existing skills and natural assets to turn ‘the oil capital of Europe’ into a green energy and manufacturing hub
IFS - End of furlough likely to be particularly tough for older workers17/06/2021 11:35:00
While a lot of the focus on the employment effects of the pandemic has, rightly, been on the young, employees over the age of 65 were 40% more likely to be furloughed in late April than those in their 40s (14% versus 10%).
“The Bank of England should end its asset purchases now”: IEA expert comments on ONS inflation figures17/06/2021 10:35:00
Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, responded to consumer price inflation figures published by the Office for National Statistics, which show inflation has jumped to 2.1 per cent
IFG - Covid-hit public services could be further disrupted by government targets17/06/2021 09:35:00
Government targets in public services may do more harm than good, warns a new paper from the Institute for Government.
Delay to roadmap could lead to “a further rash of business closures”: IEA expert comments on ONS labour market figures15/06/2021 13:30:00
Professor Len Shackleton, Editorial and Research Fellow at free market think tank the Institute of Economic Affairs, commented on the labour market figures from the Office of National Statistics showing the unemployment rate has fallen to 4.7 per cent
“Chancellor right to reject calls for furlough extension”, says IEA expert15/06/2021 12:30:00
Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, commented on calls to extend the furlough scheme
Civitas - Study finds over 80% CofE dioceses appoint clergy who advocate racial justice activist claims & over 70% promoting climate activism – marking Church’s ‘separation of the head from the body’10/06/2021 11:35:00
In a new report, researchers have set out to investigate the scale of support for ultra-progressive radical activist agendas alleging ‘systemic racism’ in English society, the understanding and use of ‘unconscious biases’ and prescribing a ‘climate emergency’ doctrine within the Church of England.