July 30, 2021

“It is essential to consolidate this new progressive age of globalization”

After thirty years of liberal globalization, a new cycle is opening before us. Without breaking with the benefits of openness, it recreates the conditions for public sovereignty and places climate issues at the heart of a new model of prosperity. It is essential to consolidate this new age of globalization, this “globalization of progressivism”, if we want to escape the rise of authoritarian nationalisms and the deleterious consequences of uncooperative de-globalization.

The reconquest of public sovereignty is primarily fiscal. The 2008 financial crisis demanded huge public spending to “save the banks” and the financing of the economy, making intolerable what had until then been tolerated: the massive tax optimization organized by the richest and the largest. companies. Since then, the response of the large States is organized. Thus in 2014 the States agreed to put an end to banking secrecy: now, when a bank holds the account of a foreign individual, it must refer it to the State of main tax domicile. of the interested party. Thus, the data of 5 million accounts held abroad by French nationals were transferred to the tax authorities.

End of tax impunity

A second stage is now opening, which tackles the tax optimization of large companies. This negotiation should lead this summer to a global tax on multinationals of at least 15% on all profits made everywhere in the world. From 500 billion to 600 billion dollars (from 412 billion to 495 billion euros) in profits, which today escape any tax, will tomorrow be taxed in the country where they were made or in the country where the company headquarters. Thus the profits of the digital giants can no longer be located in Ireland and then in the Cayman Islands without ever being taxed, neither in the United States nor in the countries where the purchases are made. The sharing of this new global tax has yet to be negotiated, but this agreement will in fact sign the end of tax impunity for multinationals.

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The European agreement that was reached in early June on “country-by-country reporting” goes in the same direction. It will oblige all large European companies to publish the profits they make in each European country and not just their consolidated result. From now on, large companies will have to play open-book. And all this pays off: in 2019, the French state thus recovered 12 billion euros in additional tax revenue thanks to the fight against tax evasion. And, according to initial estimates, the agreement on multinationals could bring in more than 100 billion dollars a year to be shared between states.

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