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Global minimum corporate tax: 130 nations to support U.S. proposal

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Re: Global minimum corporate tax: 130 nations to support U.S. proposal

#361

Earlier quoted context omitted.

I mean, sure, and this could describe almost any resource-sharing situation ever. I'd say that this however is not a resource sharing situation. It's a competition for the magical money tree of corporation taxes. And that's a good thing, because "setting up an environment in which businesses cannot thrive" is often a vote winner, but is a terrible idea.

The key ingredient in a "race to the bottom" is not resource sharing, it's competition combined with a feedback mechanism. Resource sharing figures in a lot of examples, because "consume most of the resources" is a common way to win a competition, but it's not necessary; for example there's no resource being shared in the classic prisoner's dilemma. Anyway, you're right that this a competition for corp tax money, and…

> All we have to do to avoid the "taxes too high" problem is be aware of it and decide not to do that,

This method contains no incentives to do it (competition) and no way to establish what is "too high" (also competition).

Re: Global minimum corporate tax: 130 nations to support U.S. proposal

#362

Earlier quoted context omitted.

The key ingredient in a "race to the bottom" is not resource sharing, it's competition combined with a feedback mechanism. Resource sharing figures in a lot of examples, because "consume most of the resources" is a common way to win a competition, but it's not necessary; for example there's no resource being shared in the classic prisoner's dilemma. Anyway, you're right that this a competition for corp tax money, and…

> All we have to do to avoid the "taxes too high" problem is be aware of it and decide not to do that, This method contains no incentives to do it (competition) and no way to establish what is "too high" (also competition).

Yeah, it won't cure baldness either. What it will do is solve a specific problem (countries undercutting each other and driving the tax rate to zero) which AFAIK has no other solution. The fact that it doesn't also solve a different problem we don't yet have is not a good reason to abandon it.
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