By God they finally got it!!!!

The Group of 7 has played a stabilizing roles since its inception through coordination of economic policies to tame economic cycles and/or confront economic calamities such as the financial meltdown of 2008.
Beatrice E. Rangel.
The Group of 7 has played a stabilizing roles since its inception through coordination of economic policies to tame economic cycles and/or confront economic calamities such as the financial meltdown of 2008. And while these feats have facilitated the growth of international trade and investment the group has failed to come up with policy guidelines to reestablish balances in areas where globalization has punctured economic policies creating ravines through which international players can escape national legislation. This is the case of corporate tax burdens. Their different weight among nations together with the development of sophisticate institutional arrangements that allow corporations to show profits anywhere in the world has created gigantic loopholes for multinational corporations to escape their national tax legislation. And as countries compete for foreign direct investment, a race to the bottom of tax burden ensued. Indeed, global companies today realize gains in the country where tax burdens are the lowest. As major tech giants began to create headquarters in low tax countries or in tax havens most countries in the developed world have experienced huge pinches in their public finances. The result is deteriorated public services at a time in history when citizens are hyper informed about their rights and the performance of governments concerning the protection of those rights and the procurement of public services. Lack of improvement in the quality of public service procurement has led many citizens to grow disenchanted with democracy thereby withdrawing their support to political parties while also refraining from participating in elections. Slowly but surely democracies are losing ground particularly in emerging markets.
It is thus exciting to learn that the Group of 7 has finally decided to jump into the tax harmonization bandwagon to bring the tax holidays to an end. Should all countries in the world embrace a standard tax burden both for individuals as well as for corporations two miraculous events could materialize. Since the move will sensibly increase the cost of creating an institutional framework to make profits travel to low tax destinations, corporations will give up on tax havens. His will increase the tax inflows of most countries in the world except those experiencing political upheavals or producing economic policies aimed at destroying growth ( e.g. Syria, Somalia, Venezuela, Argentina, Indonesia, Myanmar) . Second strengthened public finances can better tackle the challenges of reshaping infrastructure to better serve the 21s century economic demands.
One wonders why this rather simple reform with such extraordinary impact upon the world economy and democratic rule was not tabled before in the Group of 7 Summits. The answer is rather simple. The US Secretaries of the Treasury were men. They seldom deal with house keeping matters. Thus it had to be a woman of the stature and sensitivity of Janet Yellen to pop the tax vacation party bubble once and for all.

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