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

Re: G7: Rich nations back deal to tax multinationals

#101

Post by ko27 » Sat, Jun 05, 2021, 1:03 PM UTC

BlackVanilla wrote: post #62

This is a G7 agreement, so it seems the success of the policy will depend how much sway this will have with G20 countries. If it doesn't get the G20's agreement, what stops multinationals from simply domiciling themselves in another country like South Korea or Australia? It's currently done in Ireland, so this isn't a big jump. Also, there are countries that are not in the G20 that could quite easily undercut an agre…

It doesn't matter where they are "domiciling themselves". If the company is international and does buisness in any of the G7 countries, than those countries will collect the tax difference between 15% and whatever they are paying in Switzerland.

Re: G7: Rich nations back deal to tax multinationals

#102

Post by CryptoPunk » Sat, Jun 05, 2021, 1:03 PM UTC

refurb wrote: post #35

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 “n…

To add to that, there structural problems with an income tax in general, and a corporate income tax in particular, and there are many arguments for eliminating it altogether, and replacing it with other types of taxes (e.g. a transaction tax, a carbon tax, a land tax, etc). But this locks it in place as a constant for all countries.

Re: G7: Rich nations back deal to tax multinationals

#103

Post by peteretep » Sat, Jun 05, 2021, 1:04 PM UTC

loxs wrote: post #98

peteretep wrote: post #82

Earlier quoted context omitted.

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.

What’s the mechanism by which poor countries will get even poorer exactly here?

Re: G7: Rich nations back deal to tax multinationals

#104

Post by pydry » Sat, Jun 05, 2021, 1:04 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?

The fact that they could levy such inducements and everybody knows it is probably why this deal is happening.

Tax havens require the complicity of larger, more powerful states to exist. They are by no means inevitable.

Re: G7: Rich nations back deal to tax multinationals

#105

Post by wolfram74 » Sat, Jun 05, 2021, 1:04 PM UTC

lotsofpulp wrote: post #83

KingOfCoders wrote: post #71

Earlier quoted context omitted.

The secret of high net worth individuals is they don't own anything and they don't earn anything.

What?

"Some folks are born silver spoon in hand Lord, don't they help themselves, yeah But when the taxman comes to the door The house look a like a rummage sale" -Fortunate Son, Creedence Clearwater Revival

Re: G7: Rich nations back deal to tax multinationals

#106

Post by loxs » Sat, Jun 05, 2021, 1:05 PM UTC

peteretep wrote: post #103

loxs wrote: post #98

Earlier quoted context omitted.

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.

What’s the mechanism by which poor countries will get even poorer exactly here?

Less companies will be formed there if they don't have a tax advantage.

Re: G7: Rich nations back deal to tax multinationals

#107

Post by [deleted] » Sat, Jun 05, 2021, 1:05 PM UTC

dd36 wrote: post #95

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.

[deleted]

Re: G7: Rich nations back deal to tax multinationals

#108

Post by ko27 » Sat, Jun 05, 2021, 1:06 PM UTC

lbriner wrote: post #56

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…

Read the article again. G7 countries will collect tax difference that international companies avoided paying in tax heavens. Thus deincentivising companies from even doing buisness there.

Re: G7: Rich nations back deal to tax multinationals

#109

Post by BTinfinity » Sat, Jun 05, 2021, 1:07 PM UTC

dd36 wrote: post #99

tomp wrote: post #81

Earlier quoted context omitted.

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.

If I buy online and have it shipped to the UK, is it sold in the UK, in another countries warehouse or wherever they have a web sever?

Re: G7: Rich nations back deal to tax multinationals

#110

Post by peteretep » Sat, Jun 05, 2021, 1:08 PM UTC

loxs wrote: post #106

peteretep wrote: post #103

Earlier quoted context omitted.

What’s the mechanism by which poor countries will get even poorer exactly here?

Less companies will be formed there if they don't have a tax advantage.

And yet tax receipts locally will be up.