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Germany approves global minimum corporate tax

reuters.com

21–30 of 54 posts

Re: Germany approves global minimum corporate tax

#21

I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. I don't think these additional taxes make any sense along with a personal income tax. It should be one or the other.

> I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. So it is impossible that the profit for owners/shareholders/etc. will sink instead of prices rising?

Only temporarily. Over time investors will simply not invest if they aren't suitably compensated.

Re: Germany approves global minimum corporate tax

#22

I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. I don't think these additional taxes make any sense along with a personal income tax. It should be one or the other.

In this case, it might not have that effect if it instead onshores money that would have been held in Ireland or Bermuda instead

[dead]

Re: Germany approves global minimum corporate tax

#23

I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. I don't think these additional taxes make any sense along with a personal income tax. It should be one or the other.

The logical extension of this argument seems to be that the most consumer friendly policy would be to not tax corporations at all. I’m not sure I would agree with that.

If there is a personal income tax, then yes, there shouldn't be any corporate tax at all. It doesn't make sense. It's just double/triple taxation then. Money is only ever useful to a human at the end of the chain. Corporations and any other legal entities are fictions we create. There's no point taxing these intermediaries as long as every individual is being taxed on their income.

Re: Germany approves global minimum corporate tax

#24

I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. I don't think these additional taxes make any sense along with a personal income tax. It should be one or the other.

The logical extension of this argument seems to be that the most consumer friendly policy would be to not tax corporations at all. I’m not sure I would agree with that.

I personally would. Corporations are not people and shouldn't be treated as such. Taxing personal income after receiving dividends or salary seems like a much better option all-around.

Re: Germany approves global minimum corporate tax

#26

Earlier quoted context omitted.

> I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. So it is impossible that the profit for owners/shareholders/etc. will sink instead of prices rising?

Only temporarily. Over time investors will simply not invest if they aren't suitably compensated.

Well, wouldn't they have a hard time finding suitable markets, if about every large market adopts those taxes? The USA already has them. It is an OECD initiative.

Re: Germany approves global minimum corporate tax

#27

I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. I don't think these additional taxes make any sense along with a personal income tax. It should be one or the other.

I invite you to actually spell out that argument.

Remember that companies are taxed on their surplus, not their income. So this means that these kinds of taxes are not a extra cost that is evenly distributed among all companies, companies with low or no surplus will pay little. Up-coming competitors (with low surplus) get an advantage, increasing competition.

If the companies could simply increase their prices 15% today without loosing to competition with others, they would already have done so.

Re: Germany approves global minimum corporate tax

#28

I hope they realise that every tax levied on a corporation will simply get passed on to the consumer eventually. I don't think these additional taxes make any sense along with a personal income tax. It should be one or the other.

The logical extension of this argument seems to be that the most consumer friendly policy would be to not tax corporations at all. I’m not sure I would agree with that.

Both sides are taxed - consumption and production.

Both can be balanced out by tieing things, not to arbit rates pulled out of someone's ass, but to land and energy use. The biggest users of the planets resources need to be taxed the most.

Re: Germany approves global minimum corporate tax

#29

Earlier quoted context omitted.

The logical extension of this argument seems to be that the most consumer friendly policy would be to not tax corporations at all. I’m not sure I would agree with that.

I personally would. Corporations are not people and shouldn't be treated as such. Taxing personal income after receiving dividends or salary seems like a much better option all-around.

And is also much simpler and clearer to implement.

Re: Germany approves global minimum corporate tax

#30

Earlier quoted context omitted.

The logical extension of this argument seems to be that the most consumer friendly policy would be to not tax corporations at all. I’m not sure I would agree with that.

I personally would. Corporations are not people and shouldn't be treated as such. Taxing personal income after receiving dividends or salary seems like a much better option all-around.

Or, don't tax people's income; just tax corporations on profit/revenue.

The wealthiest 0.1% have negligible income; the middle class bears the brunt of taxation. All companies run on corporate welfare. They refuse to do anything without significant funding from Govt. Big 3 Auto got many bailouts, $250B in profits but don't have any money to build charging stations/network or invest in making an EV that people would like to buy. Big Telcos took 100s of billions for broadband access, which they never delivered. Oil companies get trillions in subsidies every year[2].

Middle class pays all the taxes, both direct and indirect. Indirect taxes are inflation, people's hard-earned-and-saved money loses 98% of value in a few decades, thanks to Govt printing massive amounts of money and giving it to Corporations (privatizing profits and socialize losses). And we also pay for substantially degraded quality of life from externalities, pollution (air pollution kills 10M/year [3]), PFAS, climate change, lead, etc.

And no, the top 1% is not wealthy, its the top 0.1% that matters. Media talks about the top 1%, these are usually people who worked their ass off sacrificing everything for 2+ decades to get to a decent income but, but thats temporary. Most of them are going to fall out of that income bracket, with layoffs, with burnout, the sacrifices made catch up to you, you either get physical or mental health issues.

[1] Profits at the “Big 3” auto companies—Ford, General Motors, and Stellantis— skyrocketed 92% from 2013 to 2022, totaling $250 billion. Forecasts for 2023 expect more than $32 billion in additional profits: https://www.epi.org/blog/uaw-automakers-negotiations/

[2] https://www.imf.org/en/Blogs/Articles/2023/08/24/fossil-fuel...

[3] https://www.nytimes.com/2022/07/08/opinion/environment/air-p...

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