On January 7, 2022, Liberty Discussion Session was conducted in the article titled “G20 leaders endorse global minimum tax on big businesses” published in Aljazeera. The article is the recent update of the G20 meeting that recognizes the need for minimum and uniform corporate income tax among its members.
Members during the discussion were divided regarding whether the current tax on corporate income needs to be reduced to a minimum or not. The opposition believed that corporate income is an important branch of revenue for the government to finance infrastructure development, social security, and administrative expenses. Hence, a reduction in corporate income tax will lead to the government needing to reduce public benefit or undergo a fiscal deficit. And, the fiscal deficit can ruin the economy in general. The supporter of the tax cut, however, believed that such reductions are necessary to incentivize businesses to earn more, and therefore, reduction in tax can instead increase the tax revenue than in previous.