Wealthy firms that have done well during the pandemic could pay more in taxes to finance recovery efforts, the IMF said Wednesday, as it backs …
Wealthy firms that have done well during the pandemic could pay more in taxes to finance recovery efforts, the IMF said Wednesday, as it backs a push for governments to unify their corporate tax rates. The renewed support for the tax reforms comes as G20 finance ministers are meeting to discuss a minimum corporate tax that would undermine the use of tax havens that drain government coffers. «The IMF has been calling for a minimum, global corporate income tax rate as a way to interrupt the race to the bottom in corporate income taxation,» said Vitor Gaspar, head of the IMF’s Fiscal Affairs Department. Gaspar spoke to reporters as he unveiled the IMF’s Fiscal Monitor report which argues that higher taxes on wealthy firms and individuals, even if temporary, could finance policies needed to ensure recovery from the pandemic. Paolo Mauro, deputy director of Fiscal Affairs Department, highlighted the option of using a «recovery contribution» or surcharge on personal or corporate incomes «given that some corporates have done very well,» during the pandemic. Stock prices worldwide, especially among tech companies, have surged throughout the pandemic, picking up speed in recent weeks to set successive new records as the global economy showed signs of a strong recovery from the downturn.
