G7: Rich nations back deal to tax multinationals

Post by KingOfCoders » Sat, Jun 05, 2021, 12:49 PM UTC

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…

Post by csomar » Sat, Jun 05, 2021, 12:50 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 neilwilson » Sat, Jun 05, 2021, 12:50 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 throwaway9980 » Sat, Jun 05, 2021, 12:51 PM UTC

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…

Post by AussieWog93 » Sat, Jun 05, 2021, 12:53 PM UTC

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.