Another attempt from the US to control the global economy. Next step, if a country doesn't comply with their global tax rates, it will be labeled enemy and suffer economic sanctions.
Or war.
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%
#42State just knows to increase taxes and do war. No, thanks.
Let people flourish in peace. We need liberty to grow as individuals. Otherwise, we're going to end up having only crony corporations and statism.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#43I 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?
Sanctions on non-compliannt countries.
This strikes me as incredibly imperialistic. Why should the USA get to decide what the tax rate is for the rest of the world?
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#44This is the only way to stop tax evasion and a race to the bottom, with devastating consequences to people to the tune of hundreds of billions of dollars lost per year.
The question is how to do this. The only way I see is unilateral action by the biggest markets: the EU and the US (plus Japan, Australia, NZ, Canada), to say "you cannot access our market if you stash your profits in a tax haven".
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#45I 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.
And where does that money go then, corporations are not taking holidays in Caribbean or buying million dollar condos. Who are you actually redistributing the wealth from.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#46If the U.S. wants to make itself uncompetitive with high corporate tax rates, that is America's problem. "Ireland's headline 12.5% corporate tax rate — much lower than most industrialized nations — has been key to attracting many multinationals to the country."
this is a battle to the bottom. Whats to stop India from offering 6.25% corporate tax rate, what will Ireland do next go to 3% tax rate to? only losers with this kind of thinking is the individuals that end up paying more taxes than the multinationals.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#47This will solve exactly 0 problems. I can't believe this is our treasury secretary. Completely clueless.
A global minimum corporate tax rate would solve the problem of corporations moving assets and headquarters to jurisdictions with lower taxation.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#48Why don't we end all this corporate tax stupidity and remove the corporate income tax? It is a very inefficient and complicated tax to levy.
>Most economists concluded long ago that it is among the least efficient and least defensible taxes.
https://www.econlib.org/library/Enc/CorporateTaxation.html
We can't have nice things because too many people see economics as a moral issue and not a math problem.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#49Isn't this basically global price fixing? It seems tremendously unfair to small businesses, at the very least.
Governments are not businesses and taxes are not prices.
Small businesses generally are taxed more harshly than large multi nationals.
Setting a global minimum is not going to necessarily restrict governments from offering lower rates to smaller businesses.
This discussion is more about avoiding inefficient market distortions.
Re: Janet Yellen to call for global minimum corporate tax rate of 21%
#50Why would another country, especially one that's doing just fine like Ireland, want to eliminate a competitive edge it has?
Based on how the US behaves generally, just sanction them to hell. You don't want to apply the global tax rate? Have fun finding liquidity when every financial institution denies you access. It worked in reducing socialist countries to poverty, it will work in forcing the hand of fiscal paradises. Or is economical warfare fine only when it's used against the commies?
So, this is why we have things like the European Union. It's to prevent global hegemons from hegemonizing TOO much. Sanction one member, and the other members could retaliate en bloc. Therefore you can't afford to sanction any single member. This means everyone who deals with EU members is forced to play fair game (give or take a lot of give and take; this is politics, after all).
[Of course the other EU members aren't entirely pleased with Irish and Dutch corporate tax rates either, but that's a story for another thread]