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Janet Yellen to call for global minimum corporate tax rate of 21%

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Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#131

Post by jessaustin »

kube-system wrote: post #103
jessaustin wrote: post #75

Earlier quoted context omitted.

An automatic rainbow unicorn pony supply would solve my rainbow unicorn pony shortfall, but that is also make-believe so never mind. This effort certainly will not accomplish the impossible thing they claim it will accomplish. Simultaneously it will cause a lot of problems for society that will make certain well-placed people even more money than they had before they installed the current government, which is the who…

International cooperation does happen, quite regularly.

International cooperation is a fine thing, in general.

International cooperation led by USA elected officials is usually a terrible thing, for Americans and also for everyone else. I don't know exactly how we're going to get fucked over by this. Based on previous form, it will likely involve exporting particular pro-corporate folly to other nations who unlike USA previously have avoided those particular follies. Also, since they're not exactly hiding the inherent coercion involved, there will likely be sanctions and stupid wars. After all, those are the answer to literally every problem everywhere, according to USA war media. In addition, it's a good bet there will be special pleading for favored and infamously badly-behaved USA mega-corps like Boeing and Wal-Mart.

If USA politicians actually wanted international standards of corporate taxation, they would copy what works from EU and also from other well-run modern states. Instead they claim to want those other nations to copy our dismal shit system.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#132

Post by aeternum »

legolas2412 wrote: post #118
aeternum wrote: post #110

Earlier quoted context omitted.

That's a strange worldview, corporations are typically seen as adding to the value of a society. They generally become profitable by providing people a better alternative than a competitor.

I as an individual add value to society. I generally become profitable by providing other people a better alternative labor/services than competing humans. Can I also get zero income tax rate? Can I also get the freedom of movement to move to tax havens and hide my existence and income in a web of different identities?

Sure, if you get citizenship in the UAE, Cayman Islands, Bahamas, even Puerto Rico, you can avoid paying income tax.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#133

Post by [deleted] »

gruez wrote: post #128
logifail wrote: post #124

Earlier quoted context omitted.

> I thought corporations were taxed on profits and not assets? How do tangible/intangible assets factor into this? Company transfers intangible asset to subsidiary in Delaware, "trademark or naming rights"[0], its locations elsewhere pay the Delaware subsidiary for the use of those rights, lowering their profits(?), and the Delaware subsidiary doesn't have to pay tax on that income and resulting profit? [0] https://w…

That'd make sense if delaware had a low corporate tax rate, but it doesn't[1]. If you wanted to relocate your profits to a low tax jurisdiction, you'd want something like north carolina (2.5%) not delaware (8.7%). [1] https://taxfoundation.org/state-corporate-income-tax-rates-b...

[deleted]

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#134

Post by InitialLastName »

missedthecue wrote: post #107
ObserverNeutral wrote: post #93

Earlier quoted context omitted.

taxes aren't just a way to raise money for federal and local governments, they are also an elegant way which society has to allocate social hatred. You need a corporate tax because people hate corporations, a wealth tax is being discussed and on the horizon because people hate the wealthy...and so forth

I would use 'destructive' rather than 'elegant'

Not as destructive as the alternative -- pitchfork economics.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#135

Post by ObserverNeutral »

InitialLastName wrote: post #134
missedthecue wrote: post #107

Earlier quoted context omitted.

I would use 'destructive' rather than 'elegant'

Not as destructive as the alternative -- pitchfork economics.

that's what I meant. Before taxes social hatred would brew and brew until finlly it was unleashed violently

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#136

Post by matheusaf »

syshum wrote: post #127
matheusaf wrote: post #90

Earlier quoted context omitted.

> The company needs a profit margin of x. If you place a tax of y on the company, that margin, simplistically, is now x+y. Not really, this only happens for perfectly inelastic goods. We can use the price elasticity of demand and price elasticity of supply to determine what amount of the tax burden will fall on buyers and sellers [1]. We can even show that for perfectly elastic goods, the tax burden will fall entirel…

Kinda of, but investor (especially in private companies) absolutely set the level of margin they require from the corporation the CEO's job is hit that margin with in reason, and if not develop a plan to hit that margin If the company is unable to hit the target long enough that is when companies shut down, so sure you can say "that is only true with perfectly inelastic goods but you fail to understand that moving yo…

Yes, I agree that there will be pressure on managers from investors, and they will try to recover their margins in several ways, but if they try to recover it from price increases beyond what the tax incidence suggests, their margins should be lower - and not higher, so they are unlikely to do that.

Now, the other effect you suggested is interesting, there are firms that exit the market because the margins are unable to give the returns that investors expect. However, this is factored in the supply curve, particularly in the long-run supply curve, so the microeconomic model still stands.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#138

Post by logifail »

gruez wrote: post #128
logifail wrote: post #124

Earlier quoted context omitted.

> I thought corporations were taxed on profits and not assets? How do tangible/intangible assets factor into this? Company transfers intangible asset to subsidiary in Delaware, "trademark or naming rights"[0], its locations elsewhere pay the Delaware subsidiary for the use of those rights, lowering their profits(?), and the Delaware subsidiary doesn't have to pay tax on that income and resulting profit? [0] https://w…

That'd make sense if delaware had a low corporate tax rate, but it doesn't[1]. If you wanted to relocate your profits to a low tax jurisdiction, you'd want something like north carolina (2.5%) not delaware (8.7%). [1] https://taxfoundation.org/state-corporate-income-tax-rates-b...

...because [under the "loophole" / arrangement we're discussing] Delaware doesn't tax (any of!) the income from those intangible assets[0]?

https://udel.edu/~pollack/Downloaded%20SDP%20articles,%20etc...

> if delaware had a low corporate tax rate

Hard to set the corporation tax rate (for income on intangible assets) any lower than zero.

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#139

Post by legolas2412 »

aeternum wrote: post #132
legolas2412 wrote: post #118

Earlier quoted context omitted.

I as an individual add value to society. I generally become profitable by providing other people a better alternative labor/services than competing humans. Can I also get zero income tax rate? Can I also get the freedom of movement to move to tax havens and hide my existence and income in a web of different identities?

Sure, if you get citizenship in the UAE, Cayman Islands, Bahamas, even Puerto Rico, you can avoid paying income tax.

That's my point. Labor doesn't have equal rights as capital

Re: Janet Yellen to call for global minimum corporate tax rate of 21%

#140

Post by henvic »

missedthecue wrote: post #109
andrepd wrote: post #69

Earlier quoted context omitted.

That's a very silly way to look at it. Corporations extract value from society. Why shouldn't they pay back what they owe? And the state has democratic control and oversight (ideally at least, much to be improved). Corporations are completely unaccountable.

It is peculiar to me how people view what a company does (accepting mutually consensual payments in return for valuable life-improving products and services) as 'exploitative', while taxes, which are in economic terms what's called rent seeking, happen to be some universal good. It seems you've managed to get things completely reversed.

To me too. Unfortunately this brainwashed view of the world is more common than anything else.
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