The G-20 convened Monday, November 19, for its main meeting and is expected to adopt a global tax plan to support a financing system for sustainable economic growth.
Here’s how the growing movement to secure this new method of financing for long-term growth has broad support:
The movement starts from the assumption that stable and affordable long-term finance is necessary to address the Sustainable Development Goals – and that governments need new sources of revenue to invest in those initiatives.
But where do we come up with this funding?
There is a broad consensus on the need to transform international flows of money toward supporting sustainable development, but policies on how that will happen remain up in the air.
Finance ministers and central bank governors are sending signals with a variety of proposals for how to increase domestic financial resources to support sustainable development, but there is no well-tested method.
It is an old question: How should we define a corporate tax?
The IMF has proposed a global corporate tax, the proposal that is being implemented across the board on Monday in the run up to the G-20 meeting. The U.S. has not adopted it yet, but the European Commission and the World Bank also support the idea of a globally agreed on corporate tax, in line with the prevailing practice.