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G7: Rich nations back deal to tax multinationals

bbc.co.uk

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Re: G7: Rich nations back deal to tax multinationals

#51

Post by dtwest »

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…

"It’s a shame that Biden had to back down from the initial 28% because of domestic opposition."

You are misrepresenting the situation. A 28% global minimum was never on the table. 28% was Biden's proposed domestic rate (which to your point, he is backing down from). But these are two separate rates so we should be clear what we are discussing here.

Re: G7: Rich nations back deal to tax multinationals

#52

Post by csomar »

workallday21 wrote: post #32

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.

It could be worse. If these doesn't exclude small time exporters, and they need to report to foreign tax bureaus; I can see them having trouble doing any exports or having to go through intermediaries who will make additional charges.

Re: G7: Rich nations back deal to tax multinationals

#53

Post by peteretep »

uniqueid wrote: post #47
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.

Cracking down on corporate tax avoidance is antithetical to 'neoliberalism', no?

On the internet “neoliberalism” simply means “stuff I don’t like involving capitalists”

Re: G7: Rich nations back deal to tax multinationals

#54

Post by thinkloop »

hliyan wrote: post #37
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 s…

The problem is a wealth tax is almost impossible to implement. People will form crappy charities or put the money in their kids' names or move it to the Caribbean or some other gymnastics that will make worse use of the money overall.

Re: G7: Rich nations back deal to tax multinationals

#56

Post by lbriner »

The G7 won't be able to make a decision on behalf of the world!

Why do companies already register their ships in Panama or hide their money in the Cayman islands? (Other havens are available)

Because these countries have decided they would rather have the income than agree that what they are doing is somewhere between morally dubious and completely ammoral. It is easy to point the finger though, some of these places probably don't have many other ways of making money...

Re: G7: Rich nations back deal to tax multinationals

#57

Post by csomar »

ajkdhcb2 wrote: post #42

A few countries agreeing on a global law. Sounds to me like "USA and UK agree that China should do X". Good luck enforcing it and closing all loopholes when there are powerful people that don't want that. Empty political talk to make it look like they are trying

> Good luck enforcing it and closing all loopholes when there are powerful people that don't want that

They are, essentially, agreeing to police their imports from world wide countries/companies; which makes them able to enforce it.

Re: G7: Rich nations back deal to tax multinationals

#58

Post by peteretep »

pclmulqdq wrote: post #45
trainsplanes wrote: post #12

Earlier quoted context omitted.

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.

People do move there. Singapore picks up a ton of US expats, as did Hong Kong before it got swallowed by China. Bermuda and the Caymans have tons of companies and restrict immigration so tightly that they are less attractive.

Are you trying to cite Singapore and Hong Kong as countries that aren’t neoliberal?

Re: G7: Rich nations back deal to tax multinationals

#59

Post by ourmandave »

the-dude wrote: post #39
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?

https://www.wikihow.com/Legally-Detain-a-Shoplifter

Re: G7: Rich nations back deal to tax multinationals

#60

Post by greenwich26 »

ko27 wrote: post #30
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.

The answer to your question is simple. Governments are the highest sovereign bodies. They can agree on whatever they want.

You are right, of course. But Rousseau made it quite clear that the sovereignty of a government is discretionary. This sort of thinking isn't convincing on an ideological or theoretical level to anyone but a medieval peasant, and it only increases my indignation.
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