31.03.2023
Professor Julien Chaisse, an associate member of CCCL, emphasized potential risks associated with implementing a minimum tax backstop, which could destabilize the financial system. The concerns raised include economic imbalances resulting from disparities between various economic sectors or regions. Additionally, establishing a minimum tax backstop could negatively affect the competitiveness of certain businesses, potentially causing job losses and hindering economic growth. Another concern is the increased compliance complexities that might arise for both businesses and individuals, leading to higher costs and administrative burdens. The implementation of any new tax policy carries the risk of unanticipated repercussions, which could potentially damage the economy or specific industries. Lastly, introducing a minimum tax backstop does not ensure improved tax collection efficiency, and it may even exacerbate existing problems within the tax system.
Read the full article here: Kevin Pinner, Min. Tax Backstop Risks Destabilizing System, Experts Say, Law360, March 31, 2023 < https://www.law360.com/tax-authority/articles/1584358/min-tax-backstop-risks-destabilizing-system-experts-say >
