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I would love to hear how they intend to enforce such a global minimum tax rate. As well how they would guarantee that no country offers a tax credit or otherwis
by kjrose 6y ago
I would love to hear how they intend to enforce such a global minimum tax rate. As well how they would guarantee that no country offers a tax credit or otherwise to lower the numbers.
And then, of course, there's the really common trick of keepin profits on the books near zero for a corporation to avoid taxes altogether. Would they suddenly be taxing income and not profit?
- ttt0 6y agoYeah, especially considering the fact that Russia and China are ditching the dollar. No one cares what America has to say anymore.
- refurb 6y agoYou think the US throws it’s weigh around wait until you start using the RMB!
- voisin 6y agoIf recent experience with America’s unilateral application of FATCA on the rest of the world, (effectively imposing massive compliance costs on other countries’ banking systems to help them find non-compliant Americans and bring in revenue equal to maybe 1/100th of the worldwide compliance costs) and how literally no country put up resistance to this imposition, I’d say everyone still cares what America has to say!
- postingawayonhn 6y agoSanctions on non-compliannt countries.
- ed25519FUUU 6y agoThis strikes me as incredibly imperialistic. Why should the USA get to decide what the tax rate is for the rest of the world?
- andrepd 6y agoStart with multilateral agreements, then sanction small jurisdictions that don't comply (e.g. bring the EU, US, Japan, etc on board and negotiate conditions, then impose them on Cayman Islands or Panama).
- ed25519FUUU 6y agoThose multinationals are following USA tax law! Why sanction the small country when your own country enables the action?
- andrepd 6y agoYes, that is precisely my point.
- peteretep 6y agoYou seem to think this will be a hard sell to most countries, where in fact 21% is below Corp Tax for most countries with clout. Most of the EU would be on board, China would be on board, all nuclear powers would be on board...
- syshum 6y agoI doubt either China or Russia would be on board, They might though they would properly ignore it and have many exemptions for State Run businesses or or such things
- HenryKissinger 6y agoBecause we need to move beyond having 200+ countries? It's time we start converging toward a one world government.
- boredumb 6y agoThat user name certainly checks out.
- 6y ago
- kjrose 6y agoSo every city with tax credits. Every county with a tax benefit. Taxes is not just a federal thing here.
- tvaughan 6y ago> there's the really common trick of keepin profits on the books near zero for a corporation to avoid taxes altogether. https://slate.com/business/2012/07/xerox-parc-and-bell-labs-brought-to-you-by-high-taxes.html https://slate.com/business/2012/07/xerox-parc-and-bell-labs-... > The thing about this is that we ought to understand both PARC and its East Coast friend Bell Labs as in important respects outgrowth of the high marginal tax rates prevailing in postwar America. These were, lets recall, very high rates.
- logifail 6y ago> As well how they would guarantee that no country offers a tax credit or otherwise to lower the numbers Never mind the international angle, what about the US states and localities offering business tax incentives to attract corporations?
- yboris 6y agoLike Delaware, the scumbag state - a tax haven
- fastball 6y agoHow is Delaware a tax haven?
- yboris 6y agohttps://www.theatlantic.com/business/archive/2016/10/dont-blame-delaware/502904/ https://www.theatlantic.com/business/archive/2016/10/dont-bl... > Delaware doesn’t tax “intangible assets,” and this encourages companies to move parts of their business to Delaware to avoid taxes in other states. This has led to Delaware being labeled a “tax haven.” See also: https://www.investopedia.com/articles/personal-finance/092515/4-reasons-why-delaware-considered-tax-shelter.asp https://www.investopedia.com/articles/personal-finance/09251...
- gruez 6y agoI don't get it. I thought corporations were taxed on profits and not assets? How do tangible/intangible assets factor into this?
- logifail 6y ago> I thought corporations were taxed on profits and not assets? How do tangible/intangible assets factor into this? Company transfers intangible asset to subsidiary in Delaware, "trademark or naming rights"[0], its locations elsewhere pay the Delaware subsidiary for the use of those rights, lowering their profits(?), and the Delaware subsidiary doesn't have to pay tax on that income and resulting profit? [0] https://www.theatlantic.com/business/archive/2016/10/dont-blame-delaware/502904/ https://www.theatlantic.com/business/archive/2016/10/dont-bl...
- FpUser 6y agoReplace income tax with the sales tax.
- kjrose 6y agoHonestly, a good VAT is far more useful than a corporate tax imo.