Sebastian Dyrda

In a new paper with Joseph Steinberg joesteinberg.com and @GuangbinHong, we develop a framework to study the macroeconomic effects of taxing multinational enterprises that shift profits to tax havens. 1/ dyrda.info/files/DyrdaHon… #OECDTax #G20 #EconTwitter

Finally, we show that pillar 1 (the sales-based profit allocation rule) has less impact on profit shifting but more macroeconomic bite than pillar 2 (the global minimum corporate tax rate), suggesting that policymakers should reconsider their approach. 6/.

We show that these policies would reduce profit shifting by more than two-thirds, but would also reduce output of the world economy. Thus, a key tension for policymakers is that profit shifting erodes high-tax countries' tax bases, but also boosts economic activity. 5/

In a new paper with Joseph Steinberg joesteinberg.com and @GuangbinHong, we develop a framework to study the macroeconomic effects of taxing multinational enterprises that shift profits to tax havens. 1/ dyrda.info/files/DyrdaHon… #OECDTax #G20 #EconTwitter

Under the optimal fiscal policy that tackles household inequality and risk, equity improves economic efficiency by incentivizing productive households to work relatively more. From @Sebastian_Dyrda and @mzpedroni: restud.com/paper/optimal-…