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EU adopts global minimum 15% tax on big business

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Re: EU adopts global minimum 15% tax on big business

#251

Post by rad_gruchalski »

cwkoss wrote: post #192
anonuser123456 wrote: post #181

Earlier quoted context omitted.

Individuals (in the US) have standard deduction, which approximates the minimum value to sustain one's person. It's a bad approximation, but it is what it is. It's assumed that corporations spend as little as possible on operations. Individuals obviously don't. Whereas a corporation wouldn't rent employees 500 sqft / person, individuals regularly rent/purchase that density for themselves. Similarly, while a corporati…

With progressive taxation of corporations, we could disincentivize the existence of trillion dollar corporations, opening up the market for thousands more million to billion dollar businesses to exist. Regulatory capture would be much harder to coordinate which would lead to much less corruption. Greater marketplace competition would lead to better quality services and products for consumers. The curve used to shape…

> we could disincentivize the existence of trillion dollar corporations

What does it help Apple that they have hundreds of billions of dollars sitting somewhere in their offshore accounts if they cannot use that money?

Re: EU adopts global minimum 15% tax on big business

#252

Post by rad_gruchalski »

Red_Leaves_Flyy wrote: post #226
anonuser123456 wrote: post #181

Earlier quoted context omitted.

Individuals (in the US) have standard deduction, which approximates the minimum value to sustain one's person. It's a bad approximation, but it is what it is. It's assumed that corporations spend as little as possible on operations. Individuals obviously don't. Whereas a corporation wouldn't rent employees 500 sqft / person, individuals regularly rent/purchase that density for themselves. Similarly, while a corporati…

>It's assumed that corporations spend as little as possible on operations. A ridiculous assumption. Corporations are incredibly wasteful and tend to solve problems by piling money on them until they’re fixed.

And to that point, that money piled on solving the problem goes back into the economy.

Re: EU adopts global minimum 15% tax on big business

#253

Post by viraptor »

VancouverMan wrote: post #242
viraptor wrote: post #150

Earlier quoted context omitted.

That would be just shitty for kids. Your parents are from A and B, but live in C. A and B are hard to enter without citizenship and impossible to live/work in long term without it. If you limit multiple citizenships, you basically kick the child and limit their family access without any reason in that situation.

In your scenario, a C-only citizenship child with an A parent and a B parent is no worse off than say his peers who have C-only citizenship, and whose parents have C-only citizenship, too. It's not like any of those C-only peers could easily visit or move to A or B, either, based on how you've described their policies. If anyone is worse off in that scenario, it would be the C-only children with C-only parents. Those…

It depends how you look at it. Sure, policies would be the same. But if you think about people, those kids may have minimal chances of seeing their extended family for years.

Re: EU adopts global minimum 15% tax on big business

#254

Post by sumedh »

leetcrew wrote: post #212
causality0 wrote: post #149

Earlier quoted context omitted.

If you're trying to do fair taxation do away with "profit" taxes entirely. Not like any of us plebs get to dodge taxes by spending our income. Subtract what the company spends on salaries from its total revenue and then charge them 20-30 percent of the remainder just like the rest of us pay. "Corporations are people" after all. Toss in a seven percent sales tax on all stock purchases.

> "Corporations are people" after all. corporations aren't people, and I think you know this. "corporate personhood" means that a corporation has some (not all) of the rights held by individual people. it certainly does not mean that it makes sense to tax corporations as if they were humans that filed a W-2 each year. what do you think would be solved by jacking up the corporate tax rate specifically? or put differen…

I think op might be talking about Mitt Romney saying corporations are people.

Re: EU adopts global minimum 15% tax on big business

#255

Post by carlosjobim »

rsj_hn wrote: post #233
carlosjobim wrote: post #232

Earlier quoted context omitted.

As one of the states in the USA, Delaware is probably the largest tax haven in the world.

Why do you think Delaware is a tax haven? Many business incorporate there because they have the legal infrastructure so that you are not in court in some boondocks with poorly established corporate case law if there is a lawsuit. But you don't pay less taxes by incorporating in Delaware, you reduce legal uncertainty. If you want an example of tax haven, Montana's a better bet.

If you do your business outside the United States, Delaware has practically no tax for you. The legal infrastructure argument is also true, but probably more important for some companies than for others.

Re: EU adopts global minimum 15% tax on big business

#256

Post by consumer451 »

dadjoker wrote: post #113
consumer451 wrote: post #12

Earlier quoted context omitted.

I am sitting in Poland, grew up under the thumb of the Soviets, but I don’t see the connection to a global minimum tax. Are you saying it’s like communism?

IMO yes. As I see it, this is countries with high taxes being jealous of countries with lower taxes, and so instead of maybe lowering taxes to become more competitive, they - along with the bloated EU leadership - bully the countries with a logically lower tax into raising theirs, so the bullies feel better about themselves and don't lose "their" tax money. This is the inherent problem of the EU, from both a social a…

This is such a hyperbolic point of view that even though it's been on my mind for days, I still don't know how to respond.

Re: EU adopts global minimum 15% tax on big business

#257

Post by zefix »

trentnix wrote: post #202
pclmulqdq wrote: post #174

Earlier quoted context omitted.

I would personally be in favor of a ~5% flat tax on corporate revenue across the board if it meant replacing the convoluted profit-based tax schemes that currently exist. The costs of compliance and "tax minimization" are already a couple percent of revenue for many companies, so replacing that cost seems very reasonable.

That would adversely affect new businesses and discourage competition for well-entrenched businesses. The net results is that it would handicap growth. Consequently, it’s a terrible idea.

Why do you think that?

If anything bigger buisnesses have more ressources to avoid taxes. - Thus having everyone pay the same would lead to large companies paying more than they do now and small companies would be barely affected.

Re: EU adopts global minimum 15% tax on big business

#258

Post by nszceta »

andsoitis wrote: post #173
nszceta wrote: post #154

Earlier quoted context omitted.

Please educate us how companies are hiding profits in tax havens. Asking for a friend.

One mechanism is via a Double Irish with a Dutch Sandwich https://www.investopedia.com/terms/d/double-irish-with-a-dut... Another example is leveraging the secrecy provided by states such as South Dakota, Nevada, Delaware, etc. via anonymous shell companies: https://en.wikipedia.org/wiki/United_States_as_a_tax_haven

U.S.-controlled foreign corporations have to pay "global intangible low-taxed income" (GILTI)

Re: EU adopts global minimum 15% tax on big business

#259

Post by nszceta »

csomar wrote: post #214
nszceta wrote: post #155

Earlier quoted context omitted.

One does not simply avoid paying taxes with an LLC unless your gross income is minute, tax deductible expenses are huge, or your losses are huge. IT IS NOT SOME MAGICAL LOOPHOLE. It is hard enough to stay afloat as a business without misinformation like this being spread.

If you have a US LLC without US income, you are disregarded by the IRS. The tricky thing is getting a bank account without an EIN, however. But if you can do that, you are pretty much set.

I'm struggling to understand why avoiding an EIN ever helps avoid taxation. It doesn't seem to be a relevant matter.

1. As a non resident alien, you are subject to US tax on business income if you are “engaged in a trade or business in the United States“, short “ETBUS”.

2. You are ETBUS only if two things are true: (i) You have at least one “dependent agent” in the US. Dependent agents are employees or companies that work almost exclusively for you. And (ii) that dependent agent does something substantial to further your business in the US. Purely administrative jobs are not included under this rule.

3. Finally, if you can benefit from an applicable tax treaty, then you’re only subject to US tax if (in addition to being ETBUS) you operate in the US through a “permanent establishment” (e.g. an office or other fixed place of business). If you don’t meet those conditions, you are not (automatically) subject to US tax on your business.

Even if the LLC generates income in the US, by offering services or selling products into the US, that income is not taxed in the US.

Source: https://globalisationguide.org/us-llc-non-resident/

Re: EU adopts global minimum 15% tax on big business

#260

Post by cwkoss »

Faark wrote: post #204
cwkoss wrote: post #193

Earlier quoted context omitted.

I like that. There is a nice justice to that idea.

Basically, it implies going back to local currencies, with all the good and bad this involves.

What are the negatives of taxing revenue that is exported from communities?
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