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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

#91

Post by greenwich26 »

tonyedgecombe wrote: post #23
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.

>Why are governments allowed to collude like this? Because otherwise everything becomes a race to the bottom.

Countries competing with each other to offer attractive business environments with the lowest taxes is a race to the top, not the bottom.

Re: G7: Rich nations back deal to tax multinationals

#92

Post by csomar »

greenwich26 wrote: post #84
csomar wrote: post #63

Earlier quoted context omitted.

> The world needs at least somewhere where you can opt-out from Western neoliberalism and socialism. Welcome to Iran...

[flagged]

I specifically mentioned Iran because they have a very low fiscal pressure (around 7%) comparing to say Cuba (40%) or France (46%).

Source: https://en.wikipedia.org/wiki/List_of_countries_by_tax_reven...

Re: G7: Rich nations back deal to tax multinationals

#93

Post by miohtama »

nickpp wrote: post #90

So the largest violence monopolists in the world are using the unique opportunity handed to them by the pandemic to create a cartel with two purposes: - raise the protection tax they levy on their subjects - prevent smaller violence monopolists from undercutting their protection fees through competition Basically governments deciding competition is not good for them and everyone should just pay up.

It's good if all competition can be taxed equal. Small biz cannot compete against Amazon that pays 0% tax in their international arrangements.

Re: G7: Rich nations back deal to tax multinationals

#94

Post by rvz »

trinovantes wrote: post #72
throwaway13337 wrote: post #44

This sounds like it will be hell for small software companies with customers all over the world. Paying taxes differently for each country of the customer you sell to is a ridiculous hardship. It only benefits the large multinationals to reduce their competition. These sorts of rules centralize markets to fewer and fewer companies able to spend the resources to fulfill more and more complex rules. The end result is h…

Don't payment processors like Stripe already handle different regional taxes?

Absolutely NOT.

Stripe is ONLY a payment gateway, 'Stripe handling taxes' is a complete myth that is always brought up by uninformed US Stripe customers only to hype Stripe up.

Stripe customers in the EU have to deal with this VAT tax pain already which is why they either don't use Stripe and use Paddle instead.

Re: G7: Rich nations back deal to tax multinationals

#95

Post by dd36 »

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 odd that they aren’t already paying taxes where goods are sold.

Re: G7: Rich nations back deal to tax multinationals

#96

Post by grey-area »

nickpp wrote: post #90

So the largest violence monopolists in the world are using the unique opportunity handed to them by the pandemic to create a cartel with two purposes: - raise the protection tax they levy on their subjects - prevent smaller violence monopolists from undercutting their protection fees through competition Basically governments deciding competition is not good for them and everyone should just pay up.

This is all true, but I think I marginally prefer the dominion of politicians I can vote for to the feudal structure of multinational corporations, which we have even less power over.

Re: G7: Rich nations back deal to tax multinationals

#97

Post by gruez »

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?

Because that would lead to a trade war?

Re: G7: Rich nations back deal to tax multinationals

#98

Post by loxs »

peteretep wrote: post #82
loxs wrote: post #69

Earlier quoted context omitted.

Such a huge win, now poorer countries will get even poorer.

I think you are misinformed about the level of corp tax in most poor countries. Twenty countries have corp tax less than 15%, of which about half are poor. 15 have no corporate tax and are either rich or are just unambiguous tax havens. Average corp tax in Africa and South America is 28%, Europe and Asia are 20%. https://taxfoundation.org/publications/corporate-tax-rates-a...

Most of these are poorer than G7 (and especially the US who is the main beneficiary), so my statement is 100% correct. I didn't say that all poorer countries will get poorer by this specific action. There are many other actions to make everyone poorer than the US.

Re: G7: Rich nations back deal to tax multinationals

#99

Post by dd36 »

tomp wrote: post #81
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 ?

Where is the money made? Take Apple selling phones in the UK. Is the money made in the UK, where the phones are sold? Maybe part of it (selling phones), but Apple enjoys a large premium over Android, and that's more debatable. Was the money made in Taiwan, where iPhones are made? Or in California, where iPhone was invented? Personally, I don't really see why UK would tax Apple more than Android makers, simply because…

It’s where they’re sold.

Re: G7: Rich nations back deal to tax multinationals

#100

Post by mediocregopher »

Naga wrote: post #15
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 ?

It's complicated. "Money they made in their country" is hard to define. Large companies abuse intangible assets to shift profits around, but it's hard to say at what point abuse starts. For example, Google USA sells advertising to its clients. But, the assets it is selling are actually owned by Google Ireland. Google Ireland charges Google USA a license fee of 100% of the revenue they made. Suddenly, Google USA has n…

Shod google not be taxed twice in this example? Once on the income made in the USA when they sold the actual thing, and once in Ireland when the Irish branch sold the thing to the USA branch? Not to mention sales tax....
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