In the limit of free flowing capital and goods this minimum is likely to also be the maximum. This will lead to a more homogenous and uniform financial situation across all countries.
A much better idea would be tarrifs. A country can tax each corporation as they see fit and what is in line with their values. They can also then have corporate or other taxes in line with their values. This would lead to a diverse menagerie of various governments and various kinds of financing. I would argue this is healthier than every country becoming the USA.
Why would this put downward pressure on the maximum corporate tax? The current minimum is 0%. Why isn't 0% also the de facto maximum, right now? Why would raising the minimum force it to (tend to) equal the maximum?
~0% is what many pay right now because various mechanisms are used to pay the tax of the lowest country tax rate. So if you enforce a minimum then likely they will pay ~min%.
This is a game theory problem not an economic or political one.
Ah, so you'd propose that 0% is the current de facto minimum and maximum, and that raising the minimum is bad per se? I took your original post to mean that states would not, practically speaking, have the liberty to impose even higher rates if a de jure minimum were imposed, while currently they do, but... rather you seem to disagree with the direct point of the move itself, which is to prevent under-cutting some minimum above 0%? Or am I misunderstanding you?
If the point is for every country to have the same tax rate then yes this solves that problem.
Each country cannot impose a higher rate de jure for the same reason why now the effective rate is 0%.
... but they all have (effectively) the same rate either way, no? The point isn't for them all to have the same rate, it's for that existing same rate to be higher, right? That it would be, in effect, the same, isn't an outcome of this move. That that same rate would be non-zero is the outcome.
Well no they dont need to have the same rate they just need to implement tariffs.
With tariffs one could choose to tax with prejudice. You could tax specific corporations higher or lower or specific industries (gas/coal). Or even give tax breaks to specific industries.
This move is a move towards uniformity and specifically uniformity with the USA. I dont think the USA is the model of fiscal governance that much of the world wants to emulate.
If one really cared to one could probably find the various loopholes of the powerful in this new minimum as well. However this is just investing time and effort into thinking about a bad idea.
A much better idea would be tarrifs. A country can tax each corporation as they see fit and what is in line with their values. They can also then have corporate or other taxes in line with their values. This would lead to a diverse menagerie of various governments and various kinds of financing. I would argue this is healthier than every country becoming the USA.