The missing profits of nations

a column by Thomas Tørsløv, Ludvig Wier and Gabriel Zucman for VOX: CEPR’s Policy Portal

Between 1985 and 2018, the global average statutory corporate tax rate fell by more than half.

This column uses new macroeconomic data to argue that profit shifting is a key driver of this decline. Close to 40% of multinational profits were artificially shifted to tax havens in 2015, and this massive tax avoidance – and the failure to curb it – are in effect leading more and more countries to give up on taxing multinational companies.

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