The global tax deal endorsed by world leaders at the recent G-20 meeting in Rome reflects the adage “To retain tax sovereignty, a state must relinquish it.” This seeming paradox refers to states’ increasing inability to collect tax revenue needed to fund domestic policies unless they work together.
Citation
Ruth Mason, The Fine Print on the Global Tax Deal: Domestic Politics Could Prevent Sweeping Reform, Foreign Affairs (November 8, 2021).