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U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

nytimes.com

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Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#31

Post by prepend »

trdtaylor1 wrote: post #10
prepend wrote: post #9

It’s interesting to see a multinational standard to set a “standard” for taxation. Seems odd to start with corporate income taxes as it seems pretty efficient to not tax corporations and encourage more distribution to individuals and tax there. I remember in my microeconomics101 course how taxes on corporate profit are easy to squish around with tax deductible benefits that reduce profit (eg, country club dues are an…

There's no other way then to establish AMT for corporations. Otherwise countries will apply deductions around this 15% global minimum anyway.

I tried to call out the other way is to push the income to individuals so corporate profits are always near zero.

So to apply energy on taxing individuals rather than corps. For corps income is so fluid, I think we get more revenue with tariffs, usage taxes, property tax, VAT, sales, etc.

Profit isn’t as important to corporations as it is to individuals.

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#32

Post by zionic »

adamsvystun wrote: post #15

While 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…

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.

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#33

Post by onlyrealcuzzo »

coliveira wrote: post #23
nostromo wrote: post #11

Earlier 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…

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.

Wouldn't a public company report how much tax it pays in different countries? Why would Ireland's tax authority have to cooperate with the IRS for this to work?

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#34

Post by dannyw »

prepend wrote: post #31
trdtaylor1 wrote: post #10

Earlier quoted context omitted.

There's no other way then to establish AMT for corporations. Otherwise countries will apply deductions around this 15% global minimum anyway.

I tried to call out the other way is to push the income to individuals so corporate profits are always near zero. So to apply energy on taxing individuals rather than corps. For corps income is so fluid, I think we get more revenue with tariffs, usage taxes, property tax, VAT, sales, etc. Profit isn’t as important to corporations as it is to individuals.

Wealthy individuals will just keep all their wealth in a company and accumulate forever. It's terrible for wealth inequality.

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#36

Post by throwawaysea »

andrepd wrote: post #29
adamsvystun wrote: post #15

While 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.

It isn't "countries around the world" that lose taxes and capital. It's a small number of very rich countries, mostly in the West, and primarily the US. This is simply a way for the US to retain economic power (and all the other powers that come from it) while cutting off competitive paths for other countries to compete and get rich. The reason this feels like a cartel is because the proposed policies amount to a joint collusive policy meant to reduce competition.

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#37

Post by codeecan »

If they would just close the loop holes that allow things like having Apple, setup a subsidiary that licenses its own stuff back to itself so it can move profits around the world ... you'd solve this problem.

Make a rule, if you own >50% of a company, you can't buy trademarks, patents, whatever from yourself.

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#39

Post by thebooktocome »

zionic wrote: post #32
adamsvystun wrote: post #15

While 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…

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.

Where are you immigrating to that doesn't "mismanage" tax revenue?

Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

#40

Post by ojbyrne »

prepend wrote: post #31
trdtaylor1 wrote: post #10

Earlier quoted context omitted.

There's no other way then to establish AMT for corporations. Otherwise countries will apply deductions around this 15% global minimum anyway.

I tried to call out the other way is to push the income to individuals so corporate profits are always near zero. So to apply energy on taxing individuals rather than corps. For corps income is so fluid, I think we get more revenue with tariffs, usage taxes, property tax, VAT, sales, etc. Profit isn’t as important to corporations as it is to individuals.

How would taxing individuals make the use of expensing 5000 square foot offices, country club dues and private jet travel less attractive for executives? They would just pile up the deductible expenses and take less taxable compensation.
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