It is time for Europe to move towards a fairer tax system. While workers in OECD countries pay more than 25% of their wages in tax, multinationals often avoid taxes and sometimes pay close to zero. This must change. That is why the Socialists and Democrats will call on other political groups to back their clear demand for an EU-wide minimum effective tax rate of no less than 18% for companies during for the final vote in Strasbourg on the TAX3 report.
Jeppe Kofod, S&D vice-president and co-rapporteur on the final TAX3 report, said:
“Putting the tax burden on citizens and workers while multinational companies continue to artificially reduce their taxes to 0% has to end. We Socialists and Democrats demand the adoption of an EU-wide minimum effective corporate tax rate to stop the race to the bottom on corporate tax in Europe. Ordinary people should not be left to pick up the unpaid tax bill of rich and powerful multinational companies. On Tuesday, the citizens of Europe will see clearly when we vote on our proposal which political groups are on their side fighting for tax justice, and which are fighting to protect the tax avoidance schemes of the multinationals.”
Note to the editors
On Tuesday, the S&D Group will inform on the outcome of the vote on the report on financial crimes, tax evasion and tax avoidance - including the update on the developments of achieving a fair effective tax rate of no less than 18% for companies EU-wide. The official S&D request for 18% this week: “Believes that a global coordination on the tax base due to the OECD/BEPS project should be accompanied by a better coordination on tax rates for improved efficiency; calls on member states to work with the Commission to determine a fair level of minimum effective taxation at EU level and to promote such standard at global level as well; believes that such level should not be set below 18% of corporate net profits.”