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U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
61–70 of 260 posts
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#62Does 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…
what defines a US company? A company registered in the US, a company headquartered in US, a company with subsidiaries in the US, a company doing transactions into US jurisdiction?
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#63Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#64Earlier quoted context omitted.
“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!
Yes, the US knows the exact amount their corporations are NOT paying taxes on. Just apply a tax and be done. Instead, they want to define what other countries will do, in order to fix the US tax leaks. I see this more as another attempt to control other countries than a real tax proposal.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#65While 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.
Although there is mismanagement, fraud, and abuse sometimes the alternative, not having that service, is worse. There is a balance usually.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#66While 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.
I always find this kind of thought interesting. The government provides a ton of things. Do you use public roads or sidewalks? Do you live, work or shop in a structure that adheres to building codes? Do you have power? Do you have access to the internet? Do you enjoy food that doesn't kill you? So many of these things wouldn't be possible for the general population without government. It takes money to operate a government. I share the frustration that tax money isn't always (often) spent effectively, but then I ask...what have I done? what would I do differently? At the end of the day, I'm not that interested in doing these things. Sure, I like to complain to my inner circle about how I could do it better, but I've not actually gotten involved. The most I do is vote for people that (on the surface) aren't unhinged and trying to mostly do good, rather than buying into political ideology. So avoiding paying taxes or escaping would just be selfish for someone in my position. Paying these taxes doesn't measurably impact my overall well-being.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#67Earlier quoted context omitted.
"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 joi…
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Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#68Earlier quoted context omitted.
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.
But aren't corporations in another country corporations of that country? They follow all the laws and rules of that country, not US ones.
When a European has dealings with Google they aren't dealing with Google Inc, they're dealing with Google Ireland Ltd.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#69Earlier quoted context omitted.
"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 joi…
Exactly. These countries put forth policy they cannot afford and are out-competed via taxation. Allowing them to express force on smaller countries in an effort to reduce their profits seems mind blowingly aggressive.
I guess its the kind of dumb policy we have to put up with until someone points out that those affected by this are likely 'minorities" in western societies and is therefore racist/bigoted. Its the only way to argue nowadays.
Re: U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas
#70If 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.
You then end up having FAANG setting a company called FAANG which each FAANG owns exactly 20% of the FANNG companies and the sole purpose was to relicensing trademarks patents or whatever.
At the end of the day moving profits around isn't illegal and I dont see how banning it solves that problem. As long as it is taxed somewhere, which is what all country cares.