This is not necessary. They only have to tax the parent company at 21% and any of it's subsidiaries. If on the other hand a company buys services from its subsidiaries located abroad, then impose a customs tax of 21% for any imports / exports.
Janet Yellen to call for global minimum corporate tax rate of 21%
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Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#32I think this is good idea and thinking far into the future. With corporations constantly paying an lower tax rate than individuals and being able to move HQ to countries that offer a bigger tax break is leading to corporate taxes being deferred to the individuals. Prisoner's dilemma. This I hope will break that cycle and corporations can finally pay their fair share of the taxes.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#33Why would another country, especially one that's doing just fine like Ireland, want to eliminate a competitive edge it has?
because the housing price bubble already hit hard Ireland in the recent past and it's gonna hit again soon if nothing changes.
low corporate taxes have made Ireland a tax heaven, with all the drawbacks you can imagine
Expensive housing, long commutes and stretched public services are making Ireland a less attractive place to live.
And it’s not just younger people who feel aggrieved. People on relatively good incomes, who might have traditionally bought into the status quo, are now priced out and are calling for more radical solutions.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#34I wonder what computer models they are using to reach 21%.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#35A unilateral global regime is the only complete solution to prevent capital from fleeing to lower-tax locales (e.g. Cayman Islands). That said, the same incentives for smaller countries to offer lower tax rates will make them unwilling to agree to a global regime. And a global taxation regime would require a degree of international cooperation that has never been seen. Janet is laying the groundwork for a potential p…
“Buy bitcoin”
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#36A unilateral global regime is the only complete solution to prevent capital from fleeing to lower-tax locales (e.g. Cayman Islands). That said, the same incentives for smaller countries to offer lower tax rates will make them unwilling to agree to a global regime. And a global taxation regime would require a degree of international cooperation that has never been seen. Janet is laying the groundwork for a potential p…
You start negotiations with global unilateral tax regime, then invite others with multilateral agreements.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#37Great!
This is a necessary move for USA as it intends to raise tax rates to pay for the Big Spend,
but also
it's a long time coming to get the "global" community aligned on tackling multi-national corporations. Tax evasion and egregious avoidance has been too easy for multi-nationals for too long - and just a few simple measures between "western" countries will make a huge difference.
Add onto this a win for the Trade Unions in Amazon and we might see Picketty get proven wrong and G > R
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#38I wonder what computer models they are using to reach 21%.
Blackjack :D
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#39If this happens, I wonder if she'll also take the credit for the price increases on all the goods and services subject corporations provide.
Corporations don't pay taxes. Their customers pay taxes. She knows that. So we can only assume this is an attempt to curb consumption.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#40I would love to hear how they intend to enforce such a global minimum tax rate. As well how they would guarantee that no country offers a tax credit or otherwise to lower the numbers. And then, of course, there's the really common trick of keepin profits on the books near zero for a corporation to avoid taxes altogether. Would they suddenly be taxing income and not profit?
> there's the really common trick of keepin profits on the books near zero for a corporation to avoid taxes altogether.
https://slate.com/business/2012/07/xerox-parc-and-bell-labs-...
> The thing about this is that we ought to understand both PARC and its East Coast friend Bell Labs as in important respects outgrowth of the high marginal tax rates prevailing in postwar America. These were, lets recall, very high rates.