G7: Rich nations back deal to tax multinationals

Post by Chris2048 » Sat, Jun 05, 2021, 12:25 PM UTC

trainsplanes wrote: post #12

greenwich26 wrote: post #10

Why 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.

There are some countries that you can move to that are generally free of the laws of western nations. For some reason, people from “western neoliberal and socialist” countries generally don’t move to them, though.

Post by tonyedgecombe » Sat, Jun 05, 2021, 12:26 PM UTC

greenwich26 wrote: post #10

Why 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.

Post by the-dude » Sat, Jun 05, 2021, 12:27 PM UTC

ggm wrote: post #22

the-dude wrote: post #4

The 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.

I'd ask some economists if thus is net negative or net positive for developing economies. If the principle is you pay tax in the economy you supply service, then a lot of service is supplied over mobile devices to emerging economies. Maybe their tax revenues will rise?

Post by Zenst » Sat, Jun 05, 2021, 12:28 PM UTC

patd wrote: post #7

amelius wrote: post #6

Earlier quoted context omitted.

> 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.

Post by sumedh » Sat, Jun 05, 2021, 12:28 PM UTC

Zenst wrote: post #18

orf wrote: post #2

Summary: > 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…

> Good. It’s a shame that Biden had to back down from the initial 28% because of domestic opposition. It's a compromise/balance and as we know of many taxes - easier to raise them than to get them inplace too start with. Biggest issue in all this would be that it will need the weight of those supporting it to peer-pressure the other countries to join. So Ireland, Luxenburg and other corporate tax over-friendly countr…