“To help cover the financial needs linked to the pandemic, governments could consider a temporary contribution to the recovery, to be collected on high income or assets”: writes the Fiscal Monitor of the IMF. A sort of solidarity tax, in the name of redistribution. In particular, “taxes on ‘excess’ corporate profits may be considered”.
A contribution of solidarity
A surcharge would recognize that “some companies have done very well, also in terms of stock market valuation,” during the pandemic, said the deputy director of the IMF’s Tax Affairs Department, Paolo Mauro, during the press conference to present the Fiscal Monitor. released Wednesday 7 April.
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According to the Fund, “reforms on national and international taxation, especially exploiting the momentum of recovery”, are needed to find at least part of the “resources necessary to improve access to basic services, expand social assistance networks, achieve Sustainable Development”. And heal inequalities, exacerbated by the crisis triggered by Covid-19, which has disproportionately affected young people.
The global minimum tax
The IMF also reiterates its support for a global minum tax on corporate profits, to counter the erosion of national tax bases, with the transfer of profits to tax havens. For some time, “the IMF has been calling for a global minimum rate to stop the race to the bottom in corporate income taxation,” said the director of the Fund’s tax affairs department, Vitor Gaspar, at a press conference.
On March 31, US President Joe Biden presented a reform of the tax system that raises corporate taxes from 21 to 28%, with a minimum tax doubled to 21% and applied on profits generated abroad, to avoid escapes. in tax havens. In recent days, the Secretary of the Treasury, Janet Yellen, has relaunched the proposal for a global minum tax on the G20 table. Starting in 2025, the UK will increase corporate taxes from 19 to 25% (but only for those with profits over £ 50,000).