G-20 Says Inequality Causes Instability as It Urges Tax Action

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G-20 Says Inequality Causes Instability as It Urges Tax Action

The Group of 20 is set to list inequality as a threat to both global stability and economic growth, as it urges more action against cross-border tax-dodging. Draft summit conclusions called not just for “strong, sustainable and balanced growth,” but also for the world’s largest economies to ensure that this growth is “inclusive, job-rich and benefits all segments of our societies.” They went on to call on the Organization for Economic Co-operation and Development to bring developing countries into its tax cooperation project, which is aimed at stopping companies from hiding profits. This emphasis may reflect the location of the summit, in Antalya on the south coast of Turkey, which has the G-20’s 16th largest economy but the group’s 10th largest population. The country is also coping with the consequences of conflict in neighboring Syria, with millions of refugees pouring into the country. “A successful outcome in Turkey must include action on climate change, tax reform, and inequality as well as a bold new plan to tackle the refugee and migrant crisis,” said Steve Price-Thomas, deputy advocacy and campaigns director of aid agency Oxfam, in an e-mailed statement. He called for “deeper corporate tax reforms to stop multinational companies cheating rich and poor countries out of billions in tax revenues.” The draft communique, which is subject to change, devoted three of its 24 paragraphs to inequality and labor issues, including the problems of “underemployment and informal jobs.” It also called on member trade ministers to meet annually and push for better cooperation. Rising inequalities in many countries may pose risks to social cohesion and the well-being of our citizens, and can also have economic impact and hinder our objective to lift growth, it said. The summit in Antalya will end on Monday with the release of a final communique. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Your browser is out-of-date. Please download one of these excellent browsers: Chrome, Firefox, Safari, Opera or Internet Explorer….
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On November 15, 2015

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