State Global Minimum Taxes Would Combat Offshore Profit Shifting

The Tax Cuts and Jobs Act of 2017 promised to stimulate economic growth and curtail global tax evasion. It was touted as a remedy for the slow bleed of capital through offshore profit shifting.

Six years later, tax evasion remains a critical concern, offshore profit shifting largely continues unabated, and there’s little indication the trillion-dollar legislative gamble has yielded the intended crackdown on tax havens. The anticipated bulwark against the exodus of domestic capital appears to be little more than a picket fence.

If the tide of offshoring profits is to be stemmed, multilateral action is necessary, ...