US advocacy group welcomes Hungary rejecting global minimum tax

Hungary is wise to reject the global minimum tax proposal that would significantly damage the valuable tax competition among countries and would cause undue harm to businesses, workers, and economies around the world, Grover Norquist, President of Americans for Tax Reform, said on the conservative advocacy group’s website.

Norquist said a global minimum tax would greatly curtail the force of tax competition. He added that competition between nations offered a critical check on the power of governments and it was vital for ensuring efficient and reasonable levels of taxation.

“The proposed minimum tax rate would be particularly detrimental to countries such as Ireland, Bulgaria, and Hungary that currently keep their corporate tax rates at lower, more competitive rates,”

he said.

“A global minimum tax also threatens poorer, developing countries that need to maintain high growth rates in order to be lifted out of poverty. Cutting corporate tax rates leads to an increase in investment, productivity, economic growth, output, and ultimately higher standards of living,” he added. Norquist said the global tax agreement was very dangerous, as it increased the tax burden on US and European manufacturers at a time of war and significant challenges to western economies.

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Government: Hungary doesn’t support global minimum tax

Hungary does not support the introduction of a global minimum tax, Foreign Minister Péter Szijjártó said on Thursday, arguing that it would be harmful and would threaten jobs.