Make change at home - A labor proposal for a corporate alternative minimum tax

February 6 2026, 8:00 – 09:30 EDT/ 13:00 – 14:30 GMT | FES New York Office

Tax competition, corporate tax avoidance and the opacity of multinational tax planning have triggered a “race to the bottom” that directly harms workers and their unions. Ineffective corporate tax rules undermine employment and depress wages by enabling companies to shift profits - often through complex loopholes - to tax havens where they no contribution to real investment, job creation or wage growth. Widespread tax avoidance and the chronic under-taxation of capital also deepen inequality and severely limit governments’ ability to fund social protection and essential public goods and services at all levels. Tax dodging further constrains financing for just transitions to low-carbon energy systems. In the Global South in particular, unsustainable debt and limited prospects for inclusive growth are closely linked to the erosion of domestic revenue bases. Although negotiations toward a more inclusive and effective international tax architecture under UN auspices are intensifying, it will likely take years before tangible benefits reach working people and their communities, due to lengthy ratification processes and subsequent implementation in domestic legal frameworks. Meanwhile, the need for progressive tax revenues has never been more urgent - especially in countries such as Nigeria, Ghana and Senegal amid mounting debt pressures. In response, trade unions have developed a comprehensive proposal for a Corporate Alternative Minimum Tax (‘CAMT’) to ensure large multinationals pay their fair share where economic activity occurs. Building on multilateral developments, particularly the G20/OECD Pillar Two model rules, the CAMT allows countries to tailor their approach to local context, ensuring that they capture a fair share of global profits attributable to their jurisdictions. The CAMT acts as a safety net and an antiabuse rule, ensures that a minimum tax is paid locally, even as global rules are implemented by the benefitting jurisdictions.

Hosted by PSI, ITUC, NUTJ, and FES New York, this 1.5-hour closed-door session convened trade union representatives from Africa and globally, alongside international tax experts and officials from Nigeria, Ghana, and Senegal. The discussion presented labor's proposal for a domestically implemented Corporate Alternative Minimum Tax and facilitated an informal exchange with ministry experts on its technical design and political feasibility at the national level.