Tax Resilience. Global Systemic Risks. Global Systemic Taxes

Abstract

A systemic risk is a cascading disaster, a multiplier of risks that spread over society and increase the existing social vulnerabilities in the community.Systemic risk - cascading disaster - originates social costs beyond the agents that cause it and are not voluntarily assumed. The participants intend to protect themselves and not the group of those harmed by the logic of their failures. The contagion falls on the victims, not on their perpetrators. The internalization of costs proceeds whenever negative externalities are established that are susceptible to incurring damage or risks on others unrelated to the activity. The negative externality is an unpaid social cost, such as climate change, pandemics, technological innovation disturbances, financial and fiscal crises. Unpaid social costs are costs of the company, private and public, which are transferred to third parties or to society as a whole and are not paid by the agents that produce them. Systemic instability, the production of systemic risks, and cascading disasters reside in: Social disasters (formerly called natural disasters).

There are systemic disasters, linked to the dysfunction of complex systems, be they global climate change,pandemics,financial systems deregulation, digital platforms,or illegal financial flows –tax avoidance,evasión,corruption,money laundering.

The systemic disaster is a cascading disaster, a multiplier of risks that spread over society and increase the existing social vulnerabilities in the community.The global systemic risks are:climate change,pandemics, financial systems regulation, infrastructure and digital platforms, the fiscal State vulnerability:the State without Income and the Income without State.

Financial innovation considers the tax goal is to collect public resources through new and non-traditional schemes. The solidarity or global taxes are the development of the double dividend. On the one hand, correct negative externalities and, on the other, provide public resources. Innovative finance provided that the resource is functional at solving negative externalities.A system malfunction causes an individualizable chain disaster. It can be in the financial, fiscal system, the digital economy, pandemic, climate change. The systemic tax is a coercive resource established by law in favor of a public entity and at the expense of a subject carrying out a taxable event, an ability to pay indicator directly related to the assessment of systemic risk. Shared responsibility for damages related to systemic risks rests with the producers of the damages. Shared responsibility is the objective foundation of the systemic tax.It is the ability to pay foundation of systemic taxes. All those who contribute to structural processes producing injustice share their responsibility for the damages. The systemic shared responsibility tax denotes a specific type of tax in which the taxpayer's ability to pay does not depend on his power to dispose of goods and services. It depends on harmful behavior based on unpaid social costs. The equity correction is independently valued from the market by the legislator. Systemic risks are led by a closed list of those responsible who have a first and last name. Therefore, the catalog or list of taxpayers is known a priori
It can be a small number of organizations that produce significant proportions of polluting emissions in oil, gas, coal, cement; powerful financial, banking, and insurance entities ( SIFI) that control the global securitization market, credits, syndicated, financial derivatives, guaranteed debt obligations; consolidated nucleus, global of oligopolistic digital value chains owners ;illicit financial flows from individuals or companies taxpayers gaming the tax system with evasion, corruption, and money laundering;specific taxpayers that take advantage of excess profits of a pandemic systemic risk. Then we have global systemic environmental tax;systemic tax on the financial system;systemic tax on pandemics;systemic tax on the erosion of bases and profit shifting.Global systemic taxes are one of the challenges of global systemic risks.The best example,even if disagree, is the G20/OECD aproved proposal on Pillar 1 and Pillar 2.

Keywords: tax resilience, systemic risk, systemic tax, ability to pay

JEL Classification: K