The global minimum tax

Niels Johannesen

Journal of Public Economics, 2022, vol. 212, issue C

Abstract: This paper studies how the global minimum tax shapes national tax policies and welfare in a formal model of international tax competition with heterogeneous countries. The net welfare effect is generally ambiguous from the perspective of non-havens. On the one hand, the global minimum tax raises their welfare by curbing profit shifting, which boosts government revenue. One the other hand, it lowers their welfare by increasing equilibrium tax rates in havens, which transfers resources from non-haven firms to haven governments. The net welfare effect is unambiguously positive when the global minimum rate is so high that profit shifting ends.

Keywords: Global minimum tax; Tax competition; Tax cooperation; Profit shifting (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Working Paper: The Global Minimum Tax (2022)
Working Paper: The Global Minimum Tax (2022)
Working Paper: The Global Minimum Tax (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:212:y:2022:i:c:s0047272722001116

DOI: 10.1016/j.jpubeco.2022.104709

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