IMF Managing Director, Kristalina Georgieva, warns that AI will impact approximately 40% of jobs worldwide, potentially worsening overall inequality. Advanced economies are expected to be more affected than emerging markets and developing economies. Georgieva calls on policymakers to implement comprehensive social safety nets and retraining programs to mitigate the impact of AI.
The EU Tax Observatory has warned that the ambitious international agreement to tackle tax havens and minimum taxation for multinational corporations is deficient and will only raise a small fraction of the anticipated revenue. Loopholes in the agreement have drained much of the expected revenue, resulting in the minimum tax generating less than 5% of corporate tax revenue. The EU Tax Observatory also expressed concerns about the potential for continued tax evasion due to exemptions and caveats in the agreement. Additionally, the group highlighted the risks associated with tax breaks for green technologies, which could worsen inequality and reduce government revenues. While the EU Tax Observatory praised efforts to combat lebturers’ use of tax havens.