Earlier quoted context omitted.
I know, but the title makes it seem like an EU campaign.
I don't see how. 'global' is right in the headline.
I assumed it was a tax the EU applied to global business, not a globally-agreed tax the EU signed onto.
EU adopts global minimum 15% tax on big business
81–90 of 266 posts
Re: EU adopts global minimum 15% tax on big business
#82Earlier quoted context omitted.
> Tax companies that are currently hiding profits in tax havens. > No single country can do this I don't understand. If America already has a >15% tax rate, then it already abides by these rules. America is not a tax haven.
USA needs to tax companies that are headquartered in tax havens, to ensure that those companies can't enjoy less than 15% global taxes. I don't think that USA is doing that right now.
If those companies are controller by a US person then they do tax them in US. See https://en.wikipedia.org/wiki/Controlled_foreign_corporation
Re: EU adopts global minimum 15% tax on big business
#83I don't really like this kind of idea because it really goes against a kind of fundemental freedom. "If you don't like it, you can leave". Instead, laws around making sure that the profits generated from a countries citizens are taxed by that country make more sense to me. A lot of laws around that already exist, and I suppose a lot of people would say that they have not been effective. A lot of it comes down to the…
> profits generated from a countries citizens are taxed by that country What about people who migrate somewhere else? What about dual+ citizenships? It makes little sense for me to pay taxes in a country I haven't lived in for 20 years.
A reasonable modified goal would be "profits generated by a country's residents are taxed by that country."
Re: EU adopts global minimum 15% tax on big business
#84I don't really like this kind of idea because it really goes against a kind of fundemental freedom. "If you don't like it, you can leave". Instead, laws around making sure that the profits generated from a countries citizens are taxed by that country make more sense to me. A lot of laws around that already exist, and I suppose a lot of people would say that they have not been effective. A lot of it comes down to the…
> I don't really like this kind of idea because it really goes against a kind of fundemental freedom. "If you don't like it, you can leave".
That's not fundamental freedom, that's a variation on Hobson's choice.
Re: EU adopts global minimum 15% tax on big business
#85Earlier quoted context omitted.
VAT taxed in this case, sure. Those are taxes on consumers. Article is bout corporate profit taxes.
Likewise corporate tax should be in the jurisdiction where services are rendered. You sell something digitally in a market then you are locating yourself in that market and that’s where you should pay tax on profit for goods sold there.
It's not that trivial to track down.
Say a US company's French subsidiary sold something for $10 in France. If the software is developed in the US, then the US company will sell it to the French subsidiary for $9, so then they only have pay profits on $1 in France. Then in the US, they will say they paid $3 in costs and sold the software to their French counterpart for $9, booking $6 of profits in the US at a lower rate.
Re: EU adopts global minimum 15% tax on big business
#86This isn't really as big a deal as it's been made out to be, IMO. This is Pillar 2 of the OECDs tax reform for corporations. Pillar 1 is much more interesting, and would require corporations to actually book profits where they are made (so not putting everything through Ireland for example). This will have a much bigger impact imo than this 15% ruling, because right now there are a bunch of tricks you can use to get…
Out of curiosity, how do you define where profits are made when it comes to selling digital services? There is no physical movement of goods. Do you determine it based on where the software was originally written?
billing zip code seems to be the standard in the united states.
Re: EU adopts global minimum 15% tax on big business
#87Earlier quoted context omitted.
Why should the profit be made in france if the engineering that went into delivery was made in the US, the content was made in X, the deal for the content was negotiated in Y, network source is Z (probably france, but not necessarily) VAT in France on the subscription makes sense, but figuring out where the profit lies, is more nebulous.
It's where the profits are, not where the cost centers are. If the customers are in France, the profits are in France.
Are you confusing profit with revenue? The revenue is in France - easy. Profit is revenue - cost, which costs do you factor in?
Re: EU adopts global minimum 15% tax on big business
#88Earlier quoted context omitted.
I wholeheartedly agree with this, and I think the idea "If you don't like it, you can leave" is one of the most important, if not THE most important freedom a person should have. It's the reason why former communist countries took passports away from their citizens. It's the idea that we know what's best for you and you better adapt because there is no escaping. It's the fundamental idea of many social justice moveme…
You can leave, but corporate profits can't leave, that is the idea. I don't see why corporate profits leaving the country they were generated in is necessary for freedom.
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Re: EU adopts global minimum 15% tax on big business
#89Why businesses are taxed so low but individuals/employees so high in EU (35%-65% income tax)?
Ideally both should not be taxed.
Re: EU adopts global minimum 15% tax on big business
#90Earlier quoted context omitted.
> profits generated from a countries citizens are taxed by that country What about people who migrate somewhere else? What about dual+ citizenships? It makes little sense for me to pay taxes in a country I haven't lived in for 20 years.
A reasonable modified goal would be "profits generated by a country's residents are taxed by that country."
Yeah, I would not even mind a "no double citizenship" rule.