Wednesday, August 4, 2021
Allison Christians (McGill; Google Scholar) & Tarcisio Diniz Magalhaes (Antwerp), It’s Time for Pillar 3: A Global Excess Profits Tax for COVID-19 and Beyond, 98 Tax Notes Int'l 507 (2020):
The novel coronavirus demands untold amounts of public spending even as it has destroyed untold amounts of economic value, yet the fortunes of some taxpayers will multiply in the process. The authors consider proposals to rebuild revenue coffers using excess profits taxes and argue that, owing to emerging global tax data, norms, and governance structures, a global excess profits tax has better prospects than a series of unilateral measures.
Even as the novel coronavirus continues to wreak havoc around the globe, certain industries reap outsize financial rewards. In response, the prospect of excess profits taxes loom as a punishment for price gouging, a curb on socially unacceptable profiteering, or a viable source of funds to meet the cost of the enormous revenue shortfalls to come. Excess profits taxes can be a satisfying policy prescription in a time when a few bask in windfalls while the masses are gripped by fear and loss and those on the front lines of public health sacrifice everything to keep the novel coronavirus at bay.