Inequalities: The gap is widening, and multinational companies are being asked to contribute

Inequalities: The gap is widening, and multinational companies are being asked to contribute

Published by:

In 2021, global inequalities will increase further. Various indicators and international reports point in the same direction.

Inequalities have returned to the level they were at the beginning of the 20th century. In one Recent report The Global Inequality Laboratory, co-organized by French economist Thomas Pickett, found that the rich get richer. The poorest 50% own 2% of the world’s wealth, while the highest 10% is 76%. Partition is growing in all parts of the world. This is especially true in the Middle East, North Africa, and Latin America, which have won the prize for inequality.

Globally, the richest 10% earn 38 times more than the poorest 50%

Pandemic did not help. It is also a real accelerator of these inequalities, as many studies have found. By 2020, four hundred million people will have lost their jobs. Failed to achieve financial recovery this year. The world still has a deficit of more than 130 million jobs compared to the pre-crisis level.

When multinational corporations make a profit, people become poorer

The big winners of lockdowns, Apple, Amazon and Netflix, continued their rise in 2021. The famous Gaffams made a record profit Utilizing the impact of the epidemic on online advertising, e-commerce and consumer spending.

Even more problematic is the fact that, despite the epidemic, these multinationals continued to favor shareholders. Oxfam, a humanitarian organization, provides detailed information on the activity reports of these large groups. For example, from January to July 2020, the six largest oil companies in the world recorded total losses of $ 61.7 billion and repayed $ 31 billion to shareholders over the same period.

See also  BAFTA Awards 2022 - Power of the Dog and Dune success, James Bond disappointed

Multinational Companies Tax Agreement

It is in this context that in October 2021, the Organization for Economic Co-operation and Development (OECD) and 136 countries reached an agreement on OECD and multinational companies’ taxes.

One The “historic” agreement for the OECDThis will allow states to reach an additional 150 150 billion in revenue. This is a major reform of the international tax system, as it plans to impose a 15% lower tax on the profits of multinational companies with a turnover of at least 750 million euros. The agreement stipulates that large groups, especially those in the digital sector, will have to agree to levy taxes not only in the countries where their users are located and where their offices are located, as they still are. One way to fight these multinational corporations’ tax breaks. One of the best examples with Google, Facebook and Apple living in Ireland offering one of the lowest corporate tax rates in the world

The new agreement between the OECD countries will take effect from 2023

This global tax is not unanimous. Moreover, it was necessary to convince some reluctant countries. Fought for this tax. The European tax havens wanted it. They stopped signing.

Most There are countries that have not signed this agreement because they believe that 15% will not be enough. This is the situation in Pakistan, Kenya or Nigeria. In sub-Saharan Africa, the average corporate tax rate is 25.5%. These countries do not want to take the risk of losing tax revenue instead of harvesting new ones.

See also  Will Robbie Williams Sell Skin Care Products Soon?

However, this new tax was praised around the world. Experts from the Global Inequality Laboratory even give a suggestion. Take inspiration from this tax on multinational corporations and apply to billionaires. They also imagine a carbon tax commensurate with the individual climate footprint. Bigger footprint than others in the rich.

Written By
More from Harding Hansen
Fiji is wary of France – FBC News
France are one of the main male competitors in the Fiji national...
Read More
Leave a comment

Your email address will not be published.