We need a new tax mix
The global minimum tax was supposed to ensure greater tax justice – but it has effectively failed. Major economic powers such as the USA, China and India are not participating, while European companies are burdened with high bureaucratic costs and little additional revenue.
Tax expert Christoph Spengel no longer sees this as a viable option. Instead, he is calling for a digital reboot of the tax system. VAT in particular must become more important – especially in the digital sector, where many services have hardly been taxed to date. The state must learn to levy taxes where consumption takes place – with the help of payment service providers, for example.
At the same time, Spengel is in favor of a fairer structure for inheritance tax. Currently, even assets worth billions can be passed on tax-free under certain conditions. In his view, a simple flat tax without special regulations would be fairer – but difficult to implement politically. One thing is clear to Spengel: the current tax system no longer fits in with the globalized, digital economy. An overhaul is overdue.