G7: Rich nations back deal to tax multinationals
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Re: G7: Rich nations back deal to tax multinationals
#2Summary:
> Firstly, the G7 want a global minimum tax rate so as to avoid a "race to the bottom" where countries can undercut each other with low tax rates.
> Secondly, the rules will aim to make companies pay tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits.
Good. It’s a shame that Biden had to back down from the initial 28% because of domestic opposition.
Re: G7: Rich nations back deal to tax multinationals
#3Summary: > Firstly, the G7 want a global minimum tax rate so as to avoid a "race to the bottom" where countries can undercut each other with low tax rates. > Secondly, the rules will aim to make companies pay tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits. Good. It’s a shame that Biden had to back down from the initial 28% because of do…
This taxes everyone along with the multinationals. The complex deals they do mean they always pay a lot less than the 12.5% or whatever the tax rate is so i don't see how raising it for everyone else will help
Re: G7: Rich nations back deal to tax multinationals
#4The cynic in me thinks this is primarily good for the Rich nations (G7), otherwise they would not have closed the deal.
Somehow, this deal will be used to keep unincumbents out.
Re: G7: Rich nations back deal to tax multinationals
#5The US tax code is absolutely riddled with tax loopholes. Many of these loopholes were designed to act as an incentive, such as tax breaks for hiring former felons, building factories in certain locations, investing in R&D etc etc. Major corporations often pay far lower than the US corporate tax rate precisely because they respond to these tax incentives (and sometimes abuse them, but that's a different story). Does this deal mean that the US will close these loopholes? If so, then 'rich nations' have lost a major tool for creating desired outcomes. If not, then how can this deal prevent other countries just offering whatever loopholes they want that reduce the effective tax rate below the minimum?
Re: G7: Rich nations back deal to tax multinationals
#6Summary: > Firstly, the G7 want a global minimum tax rate so as to avoid a "race to the bottom" where countries can undercut each other with low tax rates. > Secondly, the rules will aim to make companies pay tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits. Good. It’s a shame that Biden had to back down from the initial 28% because of do…
> Firstly, the G7 want a global minimum tax rate so as to avoid a "race to the bottom" where countries can undercut each other with low tax rates.
Why is this necessary, if countries can just tax companies based on the money they made in their country?
Re: G7: Rich nations back deal to tax multinationals
#7Summary: > Firstly, the G7 want a global minimum tax rate so as to avoid a "race to the bottom" where countries can undercut each other with low tax rates. > Secondly, the rules will aim to make companies pay tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits. Good. It’s a shame that Biden had to back down from the initial 28% because of do…
> Firstly, the G7 want a global minimum tax rate so as to avoid a "race to the bottom" where countries can undercut each other with low tax rates. Why is this necessary, if countries can just tax companies based on the money they made in their country ?
Because in practice if you make 1 million in a country, you’ll claim 1 million in expense in another country (with little to no taxes) for things like IP, trademark, etc.
Re: G7: Rich nations back deal to tax multinationals
#8The US tax code is absolutely riddled with tax loopholes. Many of these loopholes were designed to act as an incentive, such as tax breaks for hiring former felons, building factories in certain locations, investing in R&D etc etc. Major corporations often pay far lower than the US corporate tax rate precisely because they respond to these tax incentives (and sometimes abuse them, but that's a different story). Does…
This is a minimum with the corporate tax rate in the US being above that. Therefore, the difference between them minimum and the official value is the incentives margin that the government can use to nudge corporations in the desired direction.
Re: G7: Rich nations back deal to tax multinationals
#9Sight, those socialist thugs...
All of them are above the minimum, so what does that really achieve?
Message for the central planners: you can't tax me anything if I don't work. Or if I work but not here.
And let's not forget that involuntary taxation is theft.
Re: G7: Rich nations back deal to tax multinationals
#10Why are governments allowed to collude like this? Isn't this the same idea as price fixing? Exploiting their monopoly (governments' monopoly on the right to do commerce) to unfairly raise prices (taxes)?
The world needs at least somewhere where you can opt-out from Western neoliberalism and socialism.