Armed Polite Society
Main Forums => Politics => Topic started by: Ben on April 08, 2021, 08:27:50 AM
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Biden is pushing for a global minimum tax rate of 21%. In other words, getting all countries to charge corporations this minimum tax. From what I have read, I'm a little confused on if he's pushing this to be applied to US corporations in other countries only, or if he's pushing those countries to charge every corp the 21%.
We have always had one of the highest corporate tax rates in the world, so of course other countries would use that to their advantage. I'm not sure what the incentive would be for them to hurt themselves by raising the tax. Also, if it is only targeting US corps, I wonder if some countries have laws that prevent that kind of targeting?
I guess it's too much brain strain to consider dropping our corporate tax lower, thus incentivizing our corps with a carrot instead of a stick, and maybe even getting other multinational corps to look at doing business on our soil.
President Joe Biden said Wednesday that he will push for the adoption of a global minimum corporate tax rate to reduce opportunities for tax-rate arbitrage by American corporations that reduce their U.S. tax burden by shifting profits to low-rate tax havens.
“I’ve also proposed a global minimum tax, which is being proposed around the world for U.S. corporations, of 21 percent,” Biden said at a White House press briefing.
“It means that companies aren’t going to be able to hide their income in places like the Cayman Islands and Bermuda, in tax havens,” the president added.
It comes after Treasury Secretary Janet Yellen on Monday urged the adoption of such a tax, which would rely on negotiating a 21 percent global minimum corporate tax rate with major economies.
https://www.theepochtimes.com/biden-calls-for-global-minimium-tax-rate-to-target-us-companies-in-tax-havens_3767362.html
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Sounds like he is applying this only to US corps.
Ask Biden to lower taxes? Ha! You have a better chance of selling a gun to Giffords.
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Sounds like he is applying this only to US corps.
Hear that sound? It's the sound of China laughing that their plan is working so brilliantly
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Hear that sound? It's the sound of China laughing that their plan is working so brilliantly
Along with the sound of US companies moving their operations back overseas (like Ford for example)
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It looks like the G7 is agreeing to push a 15% global corporate tax. They apparently still have stuff to hammer out. At least it's better than Biden's original 21% target.
https://www.foxbusiness.com/technology/a-g-7-deal-on-a-global-minimum-tax-for-companies-faces-hurdles
I guess if I were one of the smaller non-G7 countries out there that didn't give a rat's ass about anything the G7 says, I might be inclined to offer a 10% rate.
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Never make a rule you can’t enforce. When this fails like the Hindenburg it will demonstrate the need for a global government.
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Wow. I was incredibly wrong on this. I figured for sure that a lot of non-G7 countries would have told Biden to get bent. Instead, 130 countries have signed on to a global minimum corporate tax rate. While it's a more reasonable 15% instead of 21%, I still didn't expect that many countries to fall in line.
Officials from 130 countries on June 1 agreed to establish a new framework for international tax reform, the Organisation for Economic Cooperation and Development (OECD) announced.
The two-pillar package would mean that multinational companies, including Big Tech, would be forced to pay a minimum 15 percent tax in each country they operate in, regardless of whether firms have a physical presence there.
This would remove the incentive to use tax havens and legal schemes to shift profits to low-rate countries where they do little or no business.
The OECD said more than $100 billion in profit is expected to be reallocated to market jurisdictions each year, while about $150 billion is expected to be raised from the global minimum tax rate.
“Additional benefits will also arise from the stabilisation of the international tax system and the increased tax certainty for taxpayers and tax administrations,” the organization added.
https://www.theepochtimes.com/130-countries-back-global-minimum-corporate-tax-of-15-percent-despite-vocal-opposition_3884066.html
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They all smell more money.
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They all smell more money.
Louis XVI: Time for another tax raise. What's the worse that can happen?
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So, the tax rates are the same. What about wages, and other costs? Even with the increased taxes, I'm betting it's still cheaper to operate overseas than here.
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Ben - the Irish have already rejected this money grab because of what it will do to their economy.
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So, the tax rates are the same. What about wages, and other costs? Even with the increased taxes, I'm betting it's still cheaper to operate overseas than here.
It is a global minimum corporate tax rate of 15%. The parties can charge whatever corporate tax rate they wish as long as the floor is 15%.
I suppose there is some minimal incentive keep tax rates among the member nations aligned in order to level the playing field. Note the term "minimal".
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So the US charges 15% corporate tax. Mexico charges 15%.
Considering the differences between US & Mexican wages, building construction/maintenance costs, etc., I still say it'd be cheaper to operate in Mexico than the US.
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So just hire Hollywood accountants. You know, the guys when a movie is made for 200 million, makes 1.5 billion but somehow they can make it look like it lost money.