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> 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, t

> 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.

Jensson 4y ago
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.
- splix 4y ago
  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 https://en.wikipedia.org/wiki/Controlled_foreign_corporation
- csomar 4y ago
  They already do. If you are selling from a tax haven (especially services), there is a 15-30% withholding. Of course, you might be able to recover some of that. But it's a defacto tax. Nobody here seems to understand that this is not about taxes but rather about re-shoring trade power back to the Western world (which is why it concerns the EU the most). EU/US and other developed countries offloaded a part of their industries 20-30 years ago to under-developing countries to save up on some costs. These countries (evil 0% tax countries) reduced taxes, wages and regulation to attract these offshores companies. Not because these countries like to play games, but because that's their only attraction point. And here we are, 30 years later or something like that, and the EU/US have lost a significant portion of their industrial base. Now, they want it back. Either because they have a high unemployment rate (ie: France, Italy) and they have actually people who can do these jobs; or because they think the balance has swift too much in favor of these "international" companies and zero-tax countries. Some of them have become too powerful and one of them even downright dangerous to the world order. Of course, I'm not holding my breath for the "developing" world. It still lacks lots of the infrastructure and many key industries that the EU/US can pressure with. The place to look at will be South East Asia. Europe seems to have lost here to US/Japan and China. I think Europe is going to come to a dark realization real soon. The US might emerge, again ugh, as the winner. China is hated by pretty much all its neighbors.
carlosjobim 4y ago
As one of the states in the USA, Delaware is probably the largest tax haven in the world.
- rsj_hn 4y ago
  Why do you think Delaware is a tax haven? Many business incorporate there because they have the legal infrastructure so that you are not in court in some boondocks with poorly established corporate case law if there is a lawsuit. But you don't pay less taxes by incorporating in Delaware, you reduce legal uncertainty. If you want an example of tax haven, Montana's a better bet.
  - carlosjobim 4y ago
    If you do your business outside the United States, Delaware has practically no tax for you. The legal infrastructure argument is also true, but probably more important for some companies than for others.
- dahfizz 4y ago
  Companies in Delaware still have to pay the 21% federal corporate tax rate. Well above the EU rate this article is lauding. Delaware is popular to incorporate in for legal reasons. It is not a tax shelter.

Jensson 4y ago

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.

splix 4y ago
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 https://en.wikipedia.org/wiki/Controlled_foreign_corporation
csomar 4y ago
They already do. If you are selling from a tax haven (especially services), there is a 15-30% withholding. Of course, you might be able to recover some of that. But it's a defacto tax. Nobody here seems to understand that this is not about taxes but rather about re-shoring trade power back to the Western world (which is why it concerns the EU the most). EU/US and other developed countries offloaded a part of their industries 20-30 years ago to under-developing countries to save up on some costs. These countries (evil 0% tax countries) reduced taxes, wages and regulation to attract these offshores companies. Not because these countries like to play games, but because that's their only attraction point. And here we are, 30 years later or something like that, and the EU/US have lost a significant portion of their industrial base. Now, they want it back. Either because they have a high unemployment rate (ie: France, Italy) and they have actually people who can do these jobs; or because they think the balance has swift too much in favor of these "international" companies and zero-tax countries. Some of them have become too powerful and one of them even downright dangerous to the world order. Of course, I'm not holding my breath for the "developing" world. It still lacks lots of the infrastructure and many key industries that the EU/US can pressure with. The place to look at will be South East Asia. Europe seems to have lost here to US/Japan and China. I think Europe is going to come to a dark realization real soon. The US might emerge, again ugh, as the winner. China is hated by pretty much all its neighbors.

carlosjobim 4y ago

As one of the states in the USA, Delaware is probably the largest tax haven in the world.

rsj_hn 4y ago
Why do you think Delaware is a tax haven? Many business incorporate there because they have the legal infrastructure so that you are not in court in some boondocks with poorly established corporate case law if there is a lawsuit. But you don't pay less taxes by incorporating in Delaware, you reduce legal uncertainty. If you want an example of tax haven, Montana's a better bet.
- carlosjobim 4y ago
  If you do your business outside the United States, Delaware has practically no tax for you. The legal infrastructure argument is also true, but probably more important for some companies than for others.
dahfizz 4y ago
Companies in Delaware still have to pay the 21% federal corporate tax rate. Well above the EU rate this article is lauding. Delaware is popular to incorporate in for legal reasons. It is not a tax shelter.