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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PSI has produced, in collaboration with the FES Tanzania office, a tax policy brief entitled “Lessons from the past”, which sets out a number of recommendations to address illicit financial flows (IFFs) in the mining sector in Tanzania. These IFFs result in government revenue losses that drain resources from sustainable development. They worsen inequalities, fuel instability, undermine governance, and erode public trust.