And why is it so important that businesses pay a high corporate tax rate? Isn't it enough to tax the money when it actually leaves the business? (Is paid out.)
Some economists say that corporate taxes distort capital allocation.[0] A minimum global tax rate removes the ability for a country to decide for themselves whether they want this or not. Estonia, for example, is worried that their tax system has to change as a result, because they don't charge a corporate tax on money that's reinvested or retained.
Edit: apparently Estonia is banking on an exemption for reinvestment.
Some economists say that corporate taxes distort capital allocation.[0] A minimum global tax rate removes the ability for a country to decide for themselves whether they want this or not. Estonia, for example, is worried that their tax system has to change as a result, because they don't charge a corporate tax on money that's reinvested or retained.
Edit: apparently Estonia is banking on an exemption for reinvestment.
[0] https://ec.europa.eu/economy_finance/publications/economic_p...