Countries should get taxes back from a corporation at a ratio equivalent to their contributions of a corporations success/profits. US has a good legal system, fairly educated population, market, etc. Most of these corps would not have made it in a country like Russia, or they would've been taken over in China etc. They need to pay their fair share back into the system that allowed them to thrive.
They wouldn't have made it if the US had high tax rates like Europe either. You can't have your cake and eat it as well.
Pretty hype about this TBH. There is a long history of companies domiciling in say, Monaco, The Cayman Island, Panama etc to avoid taxes and regulations where they mainly operate. My understanding is that the current process in vogue for the mega cap companies is the "double irish dutch sandwich" https://www.investopedia.com/terms/d/double-irish-with-a-dut... No one, including tax lawyers, will tell you with a straig…
It is how it was designed to work, to an extent. The Dutch are very deliberately allowing foreign corporations to negotiate their corp tax rate with them, which benefits the Dutch and no one else. It's also a regressive tax
Pretty hype about this TBH. There is a long history of companies domiciling in say, Monaco, The Cayman Island, Panama etc to avoid taxes and regulations where they mainly operate. My understanding is that the current process in vogue for the mega cap companies is the "double irish dutch sandwich" https://www.investopedia.com/terms/d/double-irish-with-a-dut... No one, including tax lawyers, will tell you with a straig…
The thing is, why would T$ company want to pay 15% if it can also pay less than 2%?
because the proposals on the table are agreements that say access to the markets and banking systems of the countries in which you do business are predicated on a 15% minimum tax rate and without paying the taxes you do not get access to the markets or banking infra which are necessary to run and grow a mega cap company.
As a US taxpayer who sees the fraud, abuse, and general mismanagement of my tax money why would I willingly support the same government getting more? It is incredibly depressing how little I get from the government vs how much they take from me. The entire system is a sham and I honestly don't want to support it anymore. I'm working as hard as I can to try and escape it at the earliest possible moment.
It sounds like you should do some research and see what the govt actually provides for you!
I thought I remembered at some point (might have been more than a decade ago) that I heard that most economist thought that corporate income taxes were basically a bad idea? Is this no longer held as a valid belief? Long term, I would almost prefer if we just moved to taxing people's assets. Maybe we can force corporations to basically pay out most of their profits to shareholders to avoid having them get too large?
taxing people's assets is complicated as hell. How much is your house worth. And before you answer that question, have you been in a bubbly market? Quotes for houses in the place I've been have gone up by 10% in the last 4 months. Now, suppose you have bought a house and suddenly all of your neighbors are rich. An appraiser comes to your place and suddenly you owe taxes and you basically get evicted from your home un…
Housing evaluations are very straight forward -- the market is what decides the price. Unless your house is something exotic like a castle or something. Every year the city or region you live in has a process to evaluate this value, and then asks you to pay a tax based on this. Generally if you feel the taxation is unfair, you can just sell the house -- if it doubled in value from the year before, according to the market, you'll probably be happy to pocket that profit. Otherwise property taxes are just how it goes when you're a house owner. Also you normally have a year to pay the tax, so there is lots of time to make a decision.
You will never close all the loopholes. It is impossible and the real people in power don't want it. High taxes, like in most of current society, will always mostly keep the poor poor and eliminate the middle class; politicians just dress it up as redistributing money from the rich.
> This makes no sense. Is the IRS a global institution now? It makes perfect sense if you take them as separate concepts. 1. Joe Biden wants other countries to work with the US and set a tax floor for corporate taxation. 2. The US Congress can pass a law that brings corporate foreign taxation in line with how real people (not just fictional ones) are taxed on foreign profits. This doesn't make the IRS any more global…
will there be any penalties for countries that do not agree to this? Say if a country wants to set a lower tax rate than this 15% global minimum in order to attract businesses. Or this country could offer lower taxes in general because they don't want to collect that much tax. After all, how much tax to collect is a structural and public spending issue, and a ideological issue. It is specific to a country, and taxati…
> Would this be a valid concern?
I wouldn't call it a concern, at least not for me. It's certainly a valid prediction based on historical priors. The US has the scale to make that type of decision for the rest of the world.
Corporations have a fiduciary obligation to maximize shareholder value. Raising taxes on your profits is surely not in the interest of your shareholders. It doesn't matter if it isn't worse for you competitively. It's worse for your profits. If you could have more competition AND more profits, you would want that.
> Corporations have a fiduciary obligation to maximize shareholder value. I understand this statement to mean "Corporations have a fiduciary obligation to maximize shareholder value [within the law]". Do corporations have a fiduciary obligation to change the law, as in your interpretation?
Yes! Lobbying.
A lot of laws are essentially written by corporations for corporations.