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Wednesday, August 4, 2021

Christians & Magalhaes: It’s Time For Pillar 3 — A Global Excess Profits Tax For COVID-19 And Beyond

Allison Christians (McGill; Google Scholar) & Tarcisio Diniz Magalhaes (Antwerp), It’s Time for Pillar 3: A Global Excess Profits Tax for COVID-19 and Beyond, 98 Tax Notes Int’l 507 (2020):

Tax Notes Int'lThe novel coronavirus calls for untold quantities of public spending even because it has destroyed untold quantities of financial worth, but the fortunes of some taxpayers will multiply within the course of. The authors take into account proposals to rebuild income coffers utilizing extra earnings taxes and argue that, owing to rising world tax information, norms, and governance buildings, a world extra earnings tax has higher prospects than a collection of unilateral measures.

Even because the novel coronavirus continues to wreak havoc across the globe, sure industries reap outsize monetary rewards. In response, the prospect of extra earnings taxes loom as a punishment for value gouging, a curb on socially unacceptable profiteering, or a viable supply of funds to satisfy the price of the big income shortfalls to return. Extra earnings taxes is usually a satisfying coverage prescription in a time when a couple of take pleasure in windfalls whereas the lots are gripped by concern and loss and people on the entrance traces of public well being sacrifice all the things to maintain the novel coronavirus at bay.

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