It's insane that they want to propose a global minimum corporate tax.
If you care about fair trade at all, a minimum tax rate is necessary, else you might as well put it at 0, because that's what it will fall towards eventually.
Europeans vow to pursue digital tax plans after US “provocation”
11–20 of 74 posts
Re: Europeans vow to pursue digital tax plans after US “provocation”
#12I find the fact talks fell through particularly concerning as right now we should all be presenting a united front against China.
I also think they should call this a digital tax or apply it only to digital services. I understand that’s where the biggest impact will be felt but a minimum corporation tax rate shouldn’t depend on business type and I dislike the idea people are free to target companies for being “too successful”.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#13Earlier quoted context omitted.
On the contrary, it's necessary if corporations can operate internationally and transfer money untaxably between jurisdictions, otherwise the global effective tax rate is that of the lowest country.
What's wrong with that? Countries need to compete just like corporations. Small countries need someway to compete for global talent, and low taxes are a good incentive.
Indeed, imagine what the tax rate would be if politicians knew corporations and people had no options. It would ratchet up to strangulation levels.
A bit of competition is always sobering.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#14It's insane that they want to propose a global minimum corporate tax.
idk, at least they are trying to get revenue for their own people from somewhere else.
Can't see a reason why they wouldn't pursue this objective except US's objection, now the relation had soured anyway.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#15More economic saber-rattling. We need less of this jingoist bull.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#16Earlier quoted context omitted.
What's wrong with that? Countries need to compete just like corporations. Small countries need someway to compete for global talent, and low taxes are a good incentive.
I would be even siding with you slightly if this amounted to actually moving people, facilities and capital to that country. However, in the modern world, corporations don't just use low taxes to simply route massive amounts of capital through low-tax countries without a net benefit for anyone — they are actually exploiting tax loopholes in different countries' tax laws against each other. https://en.wikipedia.org/wi…
If it doesn't benefit the Dutch, they would (and I understand they have at least attempted to) close the loopholes. For instance, they could require more presence in the country in particular ways: physically, employed citizens, cash in banks, taxes paid, etc.
If the beneficiaries are bribed individuals in various governments, that would be another thing entirely.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#17I find the fact talks fell through particularly concerning as right now we should all be presenting a united front against China. I also think they should call this a digital tax or apply it only to digital services. I understand that’s where the biggest impact will be felt but a minimum corporation tax rate shouldn’t depend on business type and I dislike the idea people are free to target companies for being “too su…
You are missing the point.
Because of Trump, US allies have to guard more corners than before. It's a serious problem and I think Trump is actually giving Russia/China an unfair advantage.
He has already destroyed the Asian partnerships against China that Obama started, he also got out of numerous Western partnerships because it wasn't his signature on it.
I would say that the problem is not Europe, it's 100% Trump. Allies won't back him since they can't trust him. Everyone knows he's trying to have as much as personal gain as possible. Even meddling in European affairs,. Eg. Ukraine for the clear sake of money).
Every time Trump suggests to help countries handle their affairs, you know he's going for the "pay Trump, get US military assistance" card, it's nuts.
The Western alliance since WO II can't survive in it's current form if Trump would get another term, they are all waiting till someone sane comes back. If it doesn't happen, it will become a serious problem :(
TLDR; If you wouldn't trust Trump as a business partner, how can other countries trust him. You can't unite/partner with a person like that.
Edit: if down vote. Please share something that Trump seems trustworthy without personal gain. I haven't seen any situation during his entire term, trying to redirect US-money to his pockets.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#18From a purely national interest standpoint, it's hardly surprising the US would be uninterested in negotiations given the fact it's the global digital products leader. While it's certainly true some such rules are worthwhile at the minimum tax level to stop global mega-corps avoiding taxes, like the old Double Irish loophole [1], the negotiations didn't break down over such provision, as the article mentions.
The negotiations broke down because the Europeans have failed to develop as successful a digital economy and run a large digital economic deficit with the United States. They want to levy a tax against an American import to help this trade imbalance, while claiming it doesn't amount to a trade tariff. Given the amount of economic value at stake, of course the Americans are going to view it as an unjust trade tariff and fight against it, while the Europeans will view it as a fair and justified tax for value captured in their domestic market. The global minimum tax has mutual agreement, however, so don't use that to distract or straw-man non-existent disagreement, avoiding the real and essentially intrinsically zero-sum crux of the disagreement here.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#19I find the fact talks fell through particularly concerning as right now we should all be presenting a united front against China. I also think they should call this a digital tax or apply it only to digital services. I understand that’s where the biggest impact will be felt but a minimum corporation tax rate shouldn’t depend on business type and I dislike the idea people are free to target companies for being “too su…
You are missing the point. Because of Trump, US allies have to guard more corners than before. It's a serious problem and I think Trump is actually giving Russia/China an unfair advantage. He has already destroyed the Asian partnerships against China that Obama started, he also got out of numerous Western partnerships because it wasn't his signature on it. I would say that the problem is not Europe, it's 100% Trump.…
Russia’s economy is smaller than Canada, they’re just not terribly relevant globally.
China on the other hand will eclipse the US significantly both economically and militarily, reshaping the world.
Re: Europeans vow to pursue digital tax plans after US “provocation”
#20Earlier quoted context omitted.
You are missing the point. Because of Trump, US allies have to guard more corners than before. It's a serious problem and I think Trump is actually giving Russia/China an unfair advantage. He has already destroyed the Asian partnerships against China that Obama started, he also got out of numerous Western partnerships because it wasn't his signature on it. I would say that the problem is not Europe, it's 100% Trump.…
Russia’s economy is smaller than Canada, they’re just not terribly relevant globally. China on the other hand will eclipse the US significantly both economically and militarily, reshaping the world.
I didn't say that Russia is relevant. But they do have a "more deep" ( one-sided) partnership with China to influence Western democracy.
They were a lot stronger during the USSR and even then the call for democracy broke it up.
Europe has never been closer to Moscow. Important: Without firing even a single gunshot.