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A unilateral global regime is the only complete solution to prevent capital from fleeing to lower-tax locales (e.g. Cayman Islands). That said, the same incent
by mushufasa 6y ago
A unilateral global regime is the only complete solution to prevent capital from fleeing to lower-tax locales (e.g. Cayman Islands).
That said, the same incentives for smaller countries to offer lower tax rates will make them unwilling to agree to a global regime. And a global taxation regime would require a degree of international cooperation that has never been seen.
Janet is laying the groundwork for a potential policy which would take decades if not 100 years to come to fruition. She is extremely smart and intentional about her words, as a leader of the Fed.
- atemerev 6y ago“Buy bitcoin”
- nabla9 6y agoYou start negotiations with global unilateral tax regime, then invite others with multilateral agreements.
- Shivetya 6y agoIt won't be cooperation. Either it will requiring buying off those countries or using coercion which could include anything from tariffs, fees, and penalties, or to even locking them out from access to global banking and assistance. a global tax lets the countries with irresponsible spending to offload their costs to other countries. pure and simple. it will be packaged as something else entirely but it is no different that what happens internally in many countries between different levels of governments (states,cities, territories,etc)
- logifail 6y ago> capital from fleeing to lower-tax locales (e.g. Cayman Islands) I don't think the problem is the Cayman Islands, although it's the one people think of. Instead, take a look at the places that the big multinationals choose to put their overseas revenue through. This side of the Atlantic two high on the list would be Luxembourg and Ireland. Then look at the corporation tax rates in those jurisdictions[0]. [0] https://ec.europa.eu/jrc/sites/jrcsh/files/jrc104157.pdf https://ec.europa.eu/jrc/sites/jrcsh/files/jrc104157.pdf
- syshum 6y agoyou act like capital fleeing to lower-tax locales is a problem? that is what is suppose to happen. this is just a measure for fiscally irresponsible nations (i.e the US) the are advancing the moronic Magical Monetary Theory err, Modern Monetary Theory a check to ensure global competition for capital does not expose their fraud.
- arcanon 6y agoI look forward to the tax havens on Mars