LONDON — Nothing has changed in human history as much as the rise of governments worldwide. From country to country, government control and regulation has outpaced private life. Now the finance ministers of the earth’s largest economies, known as the Group of Seven or “G-7,” have backed a U.S. proposal that calls for corporations around the world to pay at least a 15% tax on earnings.
Economic studies show it is a great benefit to countries to be tax havens. During the 1980s, governments around the world lowered corporate taxes, leading to economic growth for a generation. But massive government spending has led many governments to seek to raise taxes. The US government is now seeking to prevent corporations from fleeing elsewhere–and seeking to bind other large economies from lowering taxes to attract fleeing businesses.