Globalization

Globalization

While not exactly new—globalization already existed under the British Empire, for instance—the current wave has been the widest-ranging and the most transformative. It has lifted billions from poverty around the world, but also left many millions behind. This has fueled a domestic backlash in many countries against globalization, and geopolitical shifts—China’s rise, Russia’s belligerence and US protectionism—have dealt further blows. Now the talk is of slowbalization, friendshoring and the like. But disentangling the extensive, fiendishly complex global supply chain networks is not easy, and maybe even not entirely possible. Globalization offers clear-eyed views and analyses from widely different perspectives to help policymakers detect both opportunities and pitfalls associated with the current state of the quickly shifting global value chains.  

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Cover of EconPol Policy Brief 51

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Cover of EconPol Policy Brief 49

Has the Time Come for Excess Profit Taxes?

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Excess profit taxes (EPTs) emerge as an option to contribute to the extra needed revenues, avoiding a general increase in corporate tax rates, while having the prospect to serve as a gateway to converge toward a permanent efficient rent tax instaed of the corporate income tax. General unilateral (temporary or permanent) EPTs would face the same international pressures from profit shifting and tax competition as the existing corporate income tax, calling for international coordination. A coordinated EPT on multinational enterprises can take the form of a formulary apportionment approach that allocates the EPT base using sales by destination.

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