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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.