**TL;DR: A global minimum tax on multinational corporations can reduce tax evasion and offshoring threats.** The Organisation for Economic Cooperation and Development (OECD) recently [proposed](https://www.ft.com/content/f17a406e-021a-11ea-b7bc-f3fa4e77dd47O) a global minimum tax on multinational corporations. The proposal would set a floor on corporate taxes. If a country has a lower tax rate than the tax floor, other countries can legally target companies from these countries with higher taxes to compensate for their loss. The proposal, supported by U.S. Treasury Secretary [Janet Yellen](https://thehill.com/policy/finance/543208-yellen-proposing-global-minimum-tax-on-multinationals?rl=1), can discourage corporate offshoring and international tax evasion. Currently, a company only pays taxes to the country of its headquarter. As a result, many multinational companies have relocated their headquarters to tax havens while maintaining significant economic activities in all countries. This measure deprives governments of revenues for public expenses and concentrates wealth on these corporations. As of now, multinational companies are leverage tax havens to save [$240 billion](https://www.commondreams.org/views/2021/02/26/global-minimum-tax-multinationals-open-letter-joe-biden-international-corporate) of tax expenses every year. A global minimum corporate tax would reduce this practice. By facilitating proper taxation on these companies, this tax can strengthen government revenues and promote reasonable wealth redistribution around the world. This practice can also limit the current “[race to the bottom](https://www.washingtonpost.com/us-policy/2021/03/15/yellen-pushes-global-minimum-tax-white-house-eyes-new-spending-plan/)” status of corporate taxes. Countries have become caught in a battle of lowering corporate taxes to attract and maintain business presences. This race to the bottom gives companies the leverages and pits countries against one another. The threat of offshoring has discouraged many countries from more progressive tax codes. In the long run, the competition of low taxes leaves the multinational corporations richer and everyone else poorer. A global minimum tax would provide a floor to this competition. The tax would guarantee some levels of taxation and fair competition between countries for business investments. For these reasons, there should be a global minimum tax on multinational corporations.

**TL;DR: A global minimum corporation tax will benefit all citizens of any country** This measure would prevent multinational corporations (MNC’s) from basing their headquarters in offshore tax heavens. The money spent on goods and services inside of a country would therefore be taxed and returned to the country of origin, to be used for public goods. At a time where the Covid-19 pandemic has caused government debt and spending to reach historic highs, private companies paying a fair share of their tax will provide a necessary revenue source for governments globally. Without a global approach to this policy, MNC’s will shift their profits to the remaining tax heavens. Enforcing this multi-lateral cooperation and agreeing to a set global tax rate will be major obstacles. In the current highly polarized political economy and the competing ideologies of the USA and China, it will be highly unlikely that the goodwill and sentiment required to enforce such a law exists and therefore such an idea will remain an idea.