What Are Minimum Taxes, and Why Might One Favor or Disfavor Them?

85 Pages Posted: 24 Jul 2020 Last revised: 27 Jul 2020

See all articles by Daniel Shaviro

Daniel Shaviro

New York University School of Law

Date Written: June 9, 2020


Minimum taxes (including global minimum taxes) have serious drawbacks, and generally make sense, if at all, only if otherwise superior options must be ruled out for reasons of optics or political economy. Yet, given the “compared to what?” question that haunts all real-world tax policy-making, one cannot reasonably say that they should never be used. Still, any such use should generally be contingent, reluctant, and based on understanding their structural deficiencies.

Keywords: Minimum Taxes, Taxable Income, Financial Statement Income, Foreign Tax Credits, GloBE Pillar 2, Tax Reform

JEL Classification: H20, H24, H25, H26

Suggested Citation

Shaviro, Daniel, What Are Minimum Taxes, and Why Might One Favor or Disfavor Them? (June 9, 2020). NYU Law and Economics Research Paper No. 20-38, Available at SSRN: https://ssrn.com/abstract=3604328. or http://dx.doi.org/10.2139/ssrn.3604328

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New York University School of Law ( email )

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