In the wake of the COVID-19 pandemic, governments around the world are struggling to find new sources of revenue to help finance the economic recovery. One of the ideas gaining traction is the taxation of global income.
The concept of taxing global income is not a new one. In fact, it has been around since the 1950s. However, it has never been implemented on a global scale.
The idea behind global income taxation is simple. It is based on the notion that people should pay taxes on income earned anywhere in the world, regardless of where they live. This would mean that people living in low-tax jurisdictions, such as the Cayman Islands or Monaco, would have to pay taxes on their income, just like people living in the United States or the United Kingdom.
Proponents of global income taxation argue that it would help reduce inequality and create a fairer global tax system. They also point out that it would help reduce the incentives for tax avoidance and evasion by multinational corporations.
Critics of global income taxation argue that it is too complicated to implement on a global scale and could lead to double taxation. They also point out that it would be difficult to enforce and could lead to a race to the bottom in terms of tax rates.
Ultimately, it remains to be seen whether global income taxation will become a reality. It is an idea that many governments are considering, but it is not without controversy.
