The Revenue Effect of a Global Effective Minimum Tax

In the new EconPol Forum 6/2022 Clemens Fuest and Florian Neumeier estimate the fiscal effect of a global effective minimum tax for Germany, the EU27, and the world. Their results indicate that Germany and – on aggregate – the EU27 would benefit fiscally from a global effective minimum tax. However, the size of the additional tax revenue depends on the design of the carve-out rule and the extent of behavioral adjustments on the side of multinational companies and low-tax countries.