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Thursday, Could 25, 2023
Clausing: The Worldwide Tax Settlement of 2021—Why It is Wanted, What it Does, and What Comes Subsequent?
Kimberly A. Clausing (UCLA; Google Scholar), The Worldwide Tax Settlement of 2021: Why It is Wanted, What it Does, and What Comes Subsequent?:
In 2021, greater than 135 jurisdictions agreed on transformative new worldwide tax guidelines that will set up a minimal tax fee of 15 p.c on multinational company revenue no matter the place it was reported. In December 2022, the European Union unanimously moved ahead to implement this minimal tax, and different nations, together with South Korea, Japan, Australia, Canada, and the UK, are additionally both implementing the tax or taking substantial steps towards implementation.
In tandem, the US also needs to reform its worldwide tax system and undertake a stronger minimal tax. Whereas the way forward for the worldwide settlement is unsure, it has necessary implications for the power of governments worldwide to create tax programs which can be administrable, truthful, and environment friendly.
The settlement additionally demonstrates necessary guiding ideas for the way forward for multilateral cooperation on world collective motion issues, together with efforts to guard public well being from future pandemics, handle nuclear proliferation, and resolve territorial conflicts. US progress on worldwide tax reform would improve a lot wanted worldwide cooperation on these points.
https://taxprof.typepad.com/taxprof_blog/2023/05/clausing-the-international-tax-agreement-of-2021why-its-needed-what-it-does-and-what-comes-next.html
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