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Posts Tagged ‘Ghosh’

The Exploitation Time Bomb

Posted by hkarner - 17. Juli 2019

Jayati Ghosh is Professor of Economics at Jawaharlal Nehru University in New Delhi, Executive Secretary of International Development Economics Associates, and a member of the Independent Commission for the Reform of International Corporate Taxation.

Worsening economic inequality in recent years is largely the result of policy choices that reflect the political influence and lobbying power of the rich. There is now a self-reinforcing pattern of high profits, low investment, and rising inequality – posing a threat not only to economic growth, but also to democracy.

NEW DELHI – Since reducing inequality became an official goal of the international community, income disparities have widened. This trend, typically blamed on trade liberalization and technological advances that have weakened the bargaining power of labor vis-à-vis capital, has generated a political backlash in many countries, with voters blaming their economic plight on “others” rather than on national policies. And such sentiments of course merely aggravate social tensions without addressing the root causes of worsening inequality.

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How to Tax a Multinational

Posted by hkarner - 16. April 2019

Jayati Ghosh is Professor of Economics at Jawaharlal Nehru University in New Delhi, Executive Secretary of International Development Economics Associates, and a member of the Independent Commission for the Reform of International Corporate Taxation.

For too long, multinational corporations – and digital firms in particular – have used existing rules to avoid paying taxes in countries where they do much of their business. But recent encouraging signs suggest that the idea of a global corporate tax on these companies‘ profits is gaining traction.

NEW DELHI – For some time now, multinational companies (MNCs) have been gaming the rules of the global economy to minimize their tax liability – or even eliminate it altogether. And for some time now, the Independent Commission for the Reform of International Corporate Taxation (ICRICT) has argued for the unitary taxation of MNCs. Fortunately, there have been some encouraging recent signs that the idea of a unitary tax is gaining traction.

Introducing a global minimum effective corporate-tax rate on MNCs of between 20% and 25%, as the ICRICT (of which I am a member) , would greatly weaken these firms’ financial incentives to use so-called transfer pricing among their subsidiaries to shift recorded profits to low-tax countries. Moreover, a global minimum would end the race to the bottom in which countries lower their national tax rates in order to attract investment by MNCs. Den Rest des Beitrags lesen »

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Asia’s Strongmen and Their Weak Economies

Posted by hkarner - 5. Oktober 2018

Jayati Ghosh is Professor of Economics at Jawaharlal Nehru University in New Delhi and a member of the Independent Commission for the Reform of International Corporate Taxation.

Many people seem to believe that authoritarian rulers deliver better economic results. And yet, with the possible exception of China’s Xi Jinping, Asia’s autocrats, from India to the Philippines, are presiding over increasingly fragile states and even more vulnerable economies.

NEW DELHI – US President Donald Trump grabs the most headlines, but the cult of the strongman leader is most developed in Asia. The continent abounds with rulers – including Indian Prime Minister Narendra Modi, Philippine President Rodrigo Duterte, Turkish President Recep Tayyip Erdoğan, and the strongest of them all, Chinese President Xi Jinping – who make a virtue of centralizing power.

Obviously, leadership styles vary. But all of Asia’s strongmen share a key characteristic: they secure public support by preying on economic ignorance. In particular, they trade on the popular belief that leaders who concentrate political power are freer to guide economic growth. For the most part, people accept this claim, expecting that financial gain and “development” will be their reward. Den Rest des Beitrags lesen »

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