About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Daniel Bunn, Tax Foundation Response to Ireland Department of Finance Consultation Document: Consultation on OECD International Tax Proposals 1 (2021)

handle is hein.taxfoundation/txfnrstiel0001 and id is 1 raw text is: Tax Foundation Response to Ireland Department TA~ of Finance Consultation Document: Consultation on OECD International Tax Proposals Daniel Bunn Vice President of Global Projects Introduction Tax Foundation welcomes the opportunity to respond to the public consultation on the OECD International Tax Proposals. Tax Foundation is a nonprofit think tank based in Washington, D.C., and our mission is to improve lives through tax policies that lead to greater economic growth and opportunity. We use the four principles of simplicity, neutrality, transparency, and stability when evaluating tax policies. The recent effort to change international tax rules has been one of significant contradictions. The proposals have been driven by arguments about the need to raise additional revenues, to stabilize corporate tax rates, or to prevent offshoring. However, upon closer examination, these three arguments fail to capture what is occurring. The policies themselves do not raise significant revenues and the potentially negative economic impacts have been downplayed. The focus on tax rates has ignored more important questions about the tax base and how countries might choose to conform their rules to the proposed policies. Finally, the policy prescription to address offshoring has bled into economic protectionism. This consultation response provides a brief assessment of those three areas of contradiction, and we would welcome the opportunity to explore these issues more thoroughly with the Department of Finance. Revenues vs. Economic Impacts In October of 2020, the OECD released an impact assessment on Pillars 1 and 2 to provide policymakers with information relevant to choosing an appropriate path forward. The main results of that analysis suggested a revenue increase between $56 billion and $102 billion or between 2.3 percent and 4.0 percent of global corporate tax revenue. Globally, this is a rather small amount of revenue to be shared by over 130 countries. However, the revenue gains to some countries will ©2021 Tax Foundation likely result in lower revenues in some small exporting countries, including Ireland. Distributed under Creative Commons CC-BY-NC 4.0 Tax Foundation The policy statement signed by more than 130 countries on July 1 outlined a policy 1325 G Street, NW, Suite950 that differs in some ways from those reflected in the Impact Assessment. However, Washington, DC 20005 the general story about a relatively small global increase in revenues while some 202.464.6200 countries will lose revenues remains. taxfoundation.org

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most