Does humanity really want an authority powerful enough to claim dominion over the entire planet?
The problem is government overreach and the proposed solution is more overreach.
U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
21–30 of 260 posts
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#22Why would smaller countries who are looking for a competitive edge to attract business ever agree to this? It seems like this is really just in the interest of the US and other big incumbents that rely on large tax revenue already. But even within that group, enforcing such a minimum really has the effect of cementing the incumbents' hold on economic power. So why would any nations other than the US agree to this, wh…
And I find the idea that big companies can shift their taxes so they get a massive advantages over local businesse to be much more dystopian.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#23Does humanity really want an authority powerful enough to claim dominion over the entire planet?
This isn't a great article. It's more about the politics than the actual proposal. Bloomberg has a better write up: https://www.bloomberg.com/news/articles/2021-04-08/plans-for... To answer your question, this wouldn't create a new organization to collect a global tax. Instead it would give the IRS the authority to tax American companies (say, Google) an additional amount on their overseas earnings. So, if they paid…
I think the point is that to do this, tax agencies around the world would have to cooperate with American tax agencies, which just creates another level of overseeing that has never happened before. It is another instance of Americans trying to force their wishes on the rest of the world.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#24Why would smaller countries who are looking for a competitive edge to attract business ever agree to this? It seems like this is really just in the interest of the US and other big incumbents that rely on large tax revenue already. But even within that group, enforcing such a minimum really has the effect of cementing the incumbents' hold on economic power. So why would any nations other than the US agree to this, wh…
Read the proposal: it doesn't matter whether small countries agree to it. The idea is that if any country levies less tax than the global minimum, the IRS will automatically charge the difference. i.e. if the global minimum is 15% and a company based in Luxembourg is paying only 5%, the IRS will levy an additional tax burden to bring it up to the minimum. No coordination or cooperation is required.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#25Earlier quoted context omitted.
This isn't a great article. It's more about the politics than the actual proposal. Bloomberg has a better write up: https://www.bloomberg.com/news/articles/2021-04-08/plans-for... To answer your question, this wouldn't create a new organization to collect a global tax. Instead it would give the IRS the authority to tax American companies (say, Google) an additional amount on their overseas earnings. So, if they paid…
Last I checked the US tax code does this already. If the US tax rate is higher you pay the difference!
I believe that's on personal income tax, not on global corporations.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#26They're fumbling around trying to find any way to get out of the messes they keep creating. Yet, no one dares to talk about the true underlying causes.
what is the true underlying cause?
Corporation tax.
They should just dump it and tax dividends and capitals gains like any other income.
It's easy to shift corporation tax but much harder to shift an individuals income.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#27Thank God the US is taking charge of the GLOBAL finances. What could go wrong!? This is ladder pulling. Who needs smaller countries competing on fiscal rates when all tech should be registered in Dellaware? Note how it's a small 15% to start with. If this goes through and all the treaties are in place moving it to 25% should be much easier. Maybe the US should investigate all the creative ways US corporations pay so…
“It's a problem caused by US and US corporation and now they come to provide a solution” Shouldn’t the responsibility for US corporate problems be (presumably) addressed by the US government? I’m not understanding your point here.
Precisely. But instead of solving this problem inside US they want to re-engineer the whole globe.
Most countries are mad about multinationals, most of them rich US multinationals. If the US would do a proper job of taxing their own corporations none of this would be necessary.
Interesting how this is just in time for the Dutch sandwich scheme to expire. Clearly something else was missing!
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#28Earlier quoted context omitted.
This isn't a great article. It's more about the politics than the actual proposal. Bloomberg has a better write up: https://www.bloomberg.com/news/articles/2021-04-08/plans-for... To answer your question, this wouldn't create a new organization to collect a global tax. Instead it would give the IRS the authority to tax American companies (say, Google) an additional amount on their overseas earnings. So, if they paid…
Last I checked the US tax code does this already. If the US tax rate is higher you pay the difference!
For individuals, not for corporations. Corps can keep their profits oversees, which operates like a 401k that you never need to withdraw from.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#29While I have never looked deeply into the topic of big business corporate taxes, I do share a strong suspicion that the corporate tax system is flawed, and would be supportive of reform in the system. Including international cooperation for solving this. But the way they went about this is disappointing. There should be a way to solve this that would still allow countries to compete in attracting businesses. They tal…
"Medoicrity" is countries around the world losing hundreds of billions of dollars per year in tax evasion and capital flight. A "cartel" in this case, meaning a (democratic) agreement between major economic blocs to put a floor on corporate tax, and sanction those who violate this, is precisely what you need.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#30Why would smaller countries who are looking for a competitive edge to attract business ever agree to this? It seems like this is really just in the interest of the US and other big incumbents that rely on large tax revenue already. But even within that group, enforcing such a minimum really has the effect of cementing the incumbents' hold on economic power. So why would any nations other than the US agree to this, wh…
Read the proposal: it doesn't matter whether small countries agree to it. The idea is that if any country levies less tax than the global minimum, the IRS will automatically charge the difference. i.e. if the global minimum is 15% and a company based in Luxembourg is paying only 5%, the IRS will levy an additional tax burden to bring it up to the minimum. No coordination or cooperation is required.
The US can tax US corporations anyway it sees fit.
What do other countries have to do with it?
Read the subtitle:
>The Biden administration wants other countries to back a minimum tax as part of its plan to raise the U.S. corporate tax rate to 28 percent from 21 percent.
This makes no sense. Is the IRS a global institution now?