Socialists and Democrats want companies to pay a fair minimum effective tax rate of 18%

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.”