Corporate taxation and employment: dispelling the race-to-the-bottom myth

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A new report finds challenges the long-standing myth that corporate tax cuts boost employment. Drawing on global data, the study reveals that countries with stronger corporate tax systems tend to achieve better formal employment outcomes, improved wage distribution, and stronger public services — underscoring that fair corporate taxation is key to reducing inequality and supporting decent jobs. Read the article here.

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On 29 September 2021, PSI had released a briefing on the shortcomings of the upcoming G20/OECD agreement on international corporate taxation and urged its affiliates to take action for a fairer and stronger reform. On 30-31 October, the G20 Leaders’ summit endorsed in Rome the final deal. This note seeks to update PSI affiliates on the final outcome of the G20/ OECD negotiations, to recall PSI position and to outline trade union priorities for upcoming steps.