{"id":56444,"date":"2021-04-10T08:14:05","date_gmt":"2021-04-10T07:14:05","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=56444"},"modified":"2021-04-10T08:14:23","modified_gmt":"2021-04-10T07:14:23","slug":"why-is-the-u-k-being-so-quiet-about-the-biden-tax-plan-from-which-it-might-gain-13-5-billion","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2021\/04\/10\/why-is-the-u-k-being-so-quiet-about-the-biden-tax-plan-from-which-it-might-gain-13-5-billion\/","title":{"rendered":"Why is the UK being so quiet about the Biden tax plan from which it might gain \u00c2\u00a313.5 billion?"},"content":{"rendered":"

I share this from Tax Justice UK<\/a>, of whose advisory board I am a member:<\/i><\/p>\n

New analysis suggests that the UK would raise an extra \u00a313.5 billion a year from a global minimum corporate tax rate set at 20%. This would rise to over \u00a322 billion a year if the rate was set at 25%. Companies like Amazon, Apple, Facebook and Google could face significantly higher tax bills.<\/p>\n

President Joe Biden has proposed a sweeping overhaul of how big international companies are taxed<\/a>. This includes a new minimum tax rate which would help crack down on corporate tax avoidance.<\/p>\n

The public is fed up with major companies getting away with paying ultra low rates of tax. A new minimum corporate tax rate would bring in billions of pounds to support public services and would deal a blow to tax dodging. As we build back from covid we should ask big business to contribute more given the support they\u2019ve had during the pandemic.<\/p>\n

The Biden administration has suggested a global minimum corporate tax rate of 21%. The Independent Commission for the Reform of International Corporate Taxation<\/a> has proposed a minimum rate of 25%. Rishi Sunak has pledged to increase the UK\u2019s corporate tax rate to 25% in 2023.<\/p>\n

So far the UK government has been silent on whether it backs the US corporate tax reform plan.<\/p>\n

The government should stand up and support these proposals. The UK and its tax haven network have long promoted a global race to the bottom on corporate taxes - this needs to end.<\/p>\n

A new minimum corporate tax rate would have a big impact on places like Ireland, the Netherlands and the Cayman Islands which have ultra-low corporate tax rates. The plan comes as international negotiations on global tax reform at the OECD club of rich nations gather momentum.<\/p>\n

The analysis is contained in a soon to be published paper by international tax experts on how to implement a global minimum effective tax rate (METR) for multinational companies. The paper breaks down the expected revenue for a number of countries for different minimum tax rates based on a methodology from the OECD club of rich nations.
\n\u00e2\u20ac\u2039
\nThe METR proposal is authored by Sol Picciotto, Jeffery M. Kadet, Alex Cobham, Tommaso Faccio, Javier Garcia-Bernardo, and Petr Jansk\u00c3\u00bd. In advance of the forthcoming study, details of the proposal are available here<\/a>.<\/p>\n

I would add one thing, and that is that the UK\u2019s silence on this is now becoming quite worrying.\u00a0<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

I share this from Tax Justice UK, of whose advisory board I am a member: New analysis suggests that the UK would raise an extra
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64,79,35,78,97,11,179,75],"tags":[],"class_list":["post-56444","post","type-post","status-publish","format-standard","hentry","category-corporation-tax","category-country-by-country","category-economics","category-oecd","category-tax-justice","category-tax-justice-network","category-tax-reforms","category-usa"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/56444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=56444"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/56444\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=56444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=56444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=56444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}