Janet Yellen to call for global minimum corporate tax rate of 21% • Hacker News Board

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#61

Post by logifail » Mon, Apr 05, 2021, 1:44 PM UTC

kjrose wrote: post #16

I 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?

> As well how they would guarantee that no country offers a tax credit or otherwise to lower the numbers

Never mind the international angle, what about the US states and localities offering business tax incentives to attract corporations?

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#62

Post by turbinerneiter » Mon, Apr 05, 2021, 1:45 PM UTC

secfirstmd wrote: post #20

turbinerneiter wrote: post #6

Earlier quoted context omitted.

Congrats, they got more of the pie while reducing its total size. And getting my tax money on top of it via EU programs.

Ireland has been a net contributor to the EU budget for many years. Plus it bailed out many EU bondholders when it didn't need to.

It was itself bailed out to the tune of 44b, so they still owe me a couple of bailouts, given that no one ever bailed me out.

The whole EU is full of chery pickers and the fact that we have tax havens within it is disgusting.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#63

Post by akmarinov » Mon, Apr 05, 2021, 1:45 PM UTC

peteretep wrote: post #9

fortran77 wrote: post #5

Why would another country, especially one that's doing just fine like Ireland, want to eliminate a competitive edge it has?

So it doesn’t get locked out of the financial system by America

That’ll erode america’s financial system fairly quickly.

You can’t sanction Ireland, without sanctioning the EU, also China and India won’t agree to that, so there goes 80% of the people you trade with.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#64

Post by FpUser » Mon, Apr 05, 2021, 1:45 PM UTC

Some countries are trying to attract foreign companies using low tax rate. In return they get many benefits (look how China had developed). What would be the reason for those countries to loose that advantage and go back to being nothing?

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#65

Post by lm28469 » Mon, Apr 05, 2021, 1:45 PM UTC

fortran77 wrote: post #5

Why would another country, especially one that's doing just fine like Ireland, want to eliminate a competitive edge it has?

It's not all rainbow and sunshine though. We should strive to work on a global level and not step on eachother with "competitive advantages" like these.

These are only "competitive advantages" because some people high up decided they were legal (and probably gained some personal profit out of it). When starbucks, macdonalds or airbnb pay insanely low taxes in most european countries they're using legal ways to do so, but it doesn't benefits the people, it benefits the corporations.

I personally don't care about the exact percentage of tax we should apply, but we should start by making them pay taxes in the countries the money is made and stop allowing companies to bend the rules so much.

This is like dumping, it's a "competitive advantage" until you decide it's illegal or at least regulated, these things aren't written in stone

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#66

Post by ObserverNeutral » Mon, Apr 05, 2021, 1:45 PM UTC

To people saying this will end the race to the bottom. It will never end, when every rate is equal then tax rate would magically stop being important and the important number will be:

1) Odds of tax audits

2) Countries with statutes of limitations

3) Lenght of the legal proceedings so you can get to the aforementioned statutes of limitation

4) Median fines imposed for non-compliance etc.

5) Countries with most bribable tax officials

Human nature can't be solved, tragedy of the commons can't be solved either

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#67

Post by peteretep » Mon, Apr 05, 2021, 1:46 PM UTC

ed25519FUUU wrote: post #43

postingawayonhn wrote: post #30

Earlier quoted context omitted.

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?

You seem to think this will be a hard sell to most countries, where in fact 21% is below Corp Tax for most countries with clout. Most of the EU would be on board, China would be on board, all nuclear powers would be on board...

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#68

Post by viraptor » Mon, Apr 05, 2021, 1:46 PM UTC

pietrovismara wrote: post #28

coliveira wrote: post #21

Earlier quoted context omitted.

Everything the US does has the implicit threat of atomic bombs. Or at least economic sanctions.

I don't get the downvotes. Thats exactly how it goes, how the US in the past retained the "first global power" trophy it now lost.

Downvoted a tone-deaf comment which puts together an implicit threat of instantly vaporising thousands of unsuspecting people, and refusing to do business in one sentence - as if there wasn't a massive difference. When someone writes "threat of atomic bombs" they should consider if they mean it.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#69

Post by andrepd » Mon, Apr 05, 2021, 1:46 PM UTC

henvic wrote: post #42

State 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.

That's a very silly way to look at it. Corporations extract value from society. Why shouldn't they pay back what they owe?

And the state has democratic control and oversight (ideally at least, much to be improved). Corporations are completely unaccountable.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#70

Post by NwtnsMthd » Mon, Apr 05, 2021, 1:46 PM UTC

peteretep wrote: post #9

fortran77 wrote: post #5

Why would another country, especially one that's doing just fine like Ireland, want to eliminate a competitive edge it has?

So it doesn’t get locked out of the financial system by America

How does something like this generally work? Is it as simple as sanctions and/or tariffs?