G7: Rich nations back deal to tax multinationals • Hacker News Board

Re: G7: Rich nations back deal to tax multinationals

#31

Post by dgb23 » Sat, Jun 05, 2021, 12:33 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.

Corporations profit the most from infrastructure, education and other collective achievements of a society, so it makes sense that they also funnel resources into that system.

The charitable interpretation of this agreement is that this is to be achieved by coordinating taxes of multinational corporations.

It seems reasonable to me, strategically speaking. I have political reservations (to say the least) towards high concentration of power though, since we’re talking large corporations, G7 and so on.

Re: G7: Rich nations back deal to tax multinationals

#32

Post by workallday21 » Sat, Jun 05, 2021, 12:33 PM UTC

In other words, US is the #1 backer if imaginary assets which are also the best trick used by major multinationals to shift their tax burden. In order to solve this problem US does not get rid of imaginary assets but raises the tax on the world.

Sure, so the competitive advantage of poor countries will be what -- low wages?

This is nothing more than ladder pulling.

Re: G7: Rich nations back deal to tax multinationals

#33

Post by jessecurry » Sat, Jun 05, 2021, 12:33 PM UTC

If private companies did something like this it would be called price-fixing and they would be prosecuted.

Re: G7: Rich nations back deal to tax multinationals

#34

Post by [deleted] » Sat, Jun 05, 2021, 12:33 PM UTC

spywaregorilla wrote: post #14

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.

Collusion between governments isn't illegal, and there is no governing body that would prevent this. At best there are economic treaties between countries. This applies only to "global companies with at least a 10% profit margin". By definition, you're already playing ball with all of these actors if you're a global company.

[deleted]

Re: G7: Rich nations back deal to tax multinationals

#35

Post by refurb » Sat, Jun 05, 2021, 12:34 PM UTC

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…

This is a terrible idea. This “race to the bottom” is what drives efficiency and better ways of doing things. It’s why we don’t have $10,000 desktops in our homes with 386 processors.

If computer chip manufacturers decided to create a floor price for their products that would be collusion and bad for consumers. Same here. It’s bad for citizens of a country.

You damn know some developing country is going to be told “nah, sorry, can’t lower your corporate tax rate too low to spur investment, those jobs are staying in developed countries”.

Re: G7: Rich nations back deal to tax multinationals

#36

Post by peteretep » Sat, Jun 05, 2021, 12:35 PM UTC

Irish are gonna be pissed. Also and not ironically, what a huge win for the workers over capital.

Re: G7: Rich nations back deal to tax multinationals

#37

Post by hliyan » Sat, Jun 05, 2021, 12:35 PM UTC

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. I didn't think such a global minimum was politically possible. There was recently an article on HN where the author claimed that high tax rates don't impact high net worth individuals because they have already made their money. It just makes it harder for others to join the club. Perhaps what we need is a global maximum wealth (rather than income) cap, as a multiple of global median per-capita wealth. Perhaps start with a large multiplier (say 10,000x) and reduce 1% annually?

Re: G7: Rich nations back deal to tax multinationals

#38

Post by treis » Sat, Jun 05, 2021, 12:36 PM UTC

sumedh wrote: post #29

Zenst wrote: post #18

Earlier quoted context omitted.

> 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…

> So Ireland, Luxenburg and other corporate tax over-friendly countries Why cant US pass laws banning companies registered in tax haven countries to operate in the US?

That's throwing the baby out with the bath water. Apple has a legitimate need for a subsidiary in countries they operate. What needs to stop is the shenanigans around revenue & costs designed solely to generate profit in low tax countries.

Re: G7: Rich nations back deal to tax multinationals

#39

Post by the-dude » Sat, Jun 05, 2021, 12:37 PM UTC

jessecurry wrote: post #33

If private companies did something like this it would be called price-fixing and they would be prosecuted.

If private companies would start to imprison shoplifters, it would be illegal and they would be prosecuted.

A private company is not government and government is not a private company.

What is your point exactly?

Re: G7: Rich nations back deal to tax multinationals

#40

Post by slver » Sat, Jun 05, 2021, 12:38 PM UTC

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.

28% is a ridiculous minimum to try and impose on the ENTIRE WORLD. You have to be quite clueless about taxation worldwide to think this has a snowflake in hell chance of passing at all. "Domestic opposition" is not a factor at all.