4 ms·
Such a huge win, now poorer countries will get even poorer.
by loxs 5y ago
Such a huge win, now poorer countries will get even poorer.
- peteretep 5y agoI think you are misinformed about the level of corp tax in most poor countries. Twenty countries have corp tax less than 15%, of which about half are poor. 15 have no corporate tax and are either rich or are just unambiguous tax havens. Average corp tax in Africa and South America is 28%, Europe and Asia are 20%. https://taxfoundation.org/publications/corporate-tax-rates-around-the-world/ https://taxfoundation.org/publications/corporate-tax-rates-a...
- loxs 5y agoMost of these are poorer than G7 (and especially the US who is the main beneficiary), so my statement is 100% correct. I didn't say that all poorer countries will get poorer by this specific action. There are many other actions to make everyone poorer than the US.
- peteretep 5y agoWhat’s the mechanism by which poor countries will get even poorer exactly here?
- loxs 5y agoLess companies will be formed there if they don't have a tax advantage.
- peteretep 5y agoAnd yet tax receipts locally will be up.
- CryptoPunk 5y agoAnd less private spending and investment by these corporations and their shareholders. The optimal size of government spending, as a percentage of GDP, for economic growth, is likely well below 25%, and significantly lower than the level in every OECD country, so to the extent that this enables increases in government spending, it will likely hurt economic growth: https://web.archive.org/web/20170821004405/http://ime.bg/uploads/335309_OptimalSizeOfGovernment.pdf https://web.archive.org/web/20170821004405/http://ime.bg/upl...