EU and US Call for Global Minimum Corporate Tax Aimed at Multi-National Corporations - Politics Forum.org | PoFo

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#15165188
I agree, there needs to be a global minimum corporate tax on multi-national corporations who are known for offshoring to dodge taxes they should be paying.

Jan Strupczewski of Reuters wrote:The European Commission backed on Tuesday a call from U.S. Treasury Secretary Janet Yellen for a global minimum corporate tax, but said its rate should be decided in talks in the Organisation for Economic Cooperation and Development (OECD).

Yellen said on Monday she was working with G20 countries to agree on a global corporate minimum tax rate to end a “thirty-year race to the bottom on corporate tax rates”.

The U.S. plan envisages a 21% minimum corporate tax rate, coupled with eliminating exemptions on income from countries that do not enact a minimum tax to discourage the shifting of jobs and profits overseas.

“We remain committed to ensuring that all businesses, including digital ones, pay their fair share of tax, where it is rightfully due,” European Commission spokesman Dan Ferrie told a news briefing when asked about the U.S. proposal.

The OECD has long been working on two-pillar global taxation scheme, originally meant mainly for digital giants like Google, Amazon, Facebook or Apple, to tax companies where they make profits even if they do not have a physical presence there.

The second pillar of the OECD scheme is to establish a global minimum tax rate, which could apply to all companies, not only digital ones, so that governments do not compete with each other offering lower taxes to attract large multinational firms.

“We welcome the strong support from all G20 Finance Ministers for an agreement on both OECD pillars by July 2021,” Ferrie said.


https://www.reuters.com/article/us-usa- ... SKBN2BT1YG
#15165204
@wat0n

They won't have to comply at all and the the US will simply not allow corporations to claim earned foreign income as an exemption and will get it's money from those corporations that do business in those poorer states that way. Those corporations that do business in countries that are part of the minimum global corporate tax will remain eligible for that earned foreign income tax credit while still paying the minimum global income tax. Either way, for the US government at least, it's a win if other countries agree to participate. Which it sounds like the EU would be willing to participate with the US in a global minimum corporate tax.
#15165419
Politics_Observer wrote:@wat0n

They won't have to comply at all and the the US will simply not allow corporations to claim earned foreign income as an exemption and will get it's money from those corporations that do business in those poorer states that way. Those corporations that do business in countries that are part of the minimum global corporate tax will remain eligible for that earned foreign income tax credit while still paying the minimum global income tax. Either way, for the US government at least, it's a win if other countries agree to participate. Which it sounds like the EU would be willing to participate with the US in a global minimum corporate tax.


I can imagine Ireland or Cyprus blocking an EU vote on the matter.
#15165421
It seems like people are finally figuring out that an international campaign of solidarity is needed in order to ensure that the richest among us do not continue to exploit the working class.

Having said that, this means that the richest will try to stop this. They will probably be successful.
#15165422
@wat0n They won't, because both are held up in other matters.

Reading the news in the UK and especially the ultra-capitalist anti-EU Telegraph, this is a done deal.

This is treated as already passed, not something that may happen, but something that has already happened and how will the UK position itself in this new brave world.

In the EU this has been in the making for years, the only thing missing was a willing US that Biden has now provided.
#15165439
There seem to be two places where this proposal could fail:

1. In the negotiations between the different countries, and...
2. On its way through the US legislatures.

And the main opponents seem to be the biggest and most powerful US tech companies.

So, my bet is that these companies “lobby” enough US congress people and senators to ensure this never passes the two houses.
#15165447
Politics_Observer wrote:@Pants-of-dog

Don't be so sure about that with a democrat controlled Congress. My bet is that this bill will pass.


If you assume that people will vote along partisan lines, the US tech companies only need to buy one senator to make this fail.
#15165448
Pants-of-dog wrote:If you assume that people will vote along partisan lines, the US tech companies only need to buy one senator to make this fail.


I think you are losing the raison d'etre for your own existence with Biden doing all the things you wanted to see doing and are now upset that you will no longer be able to be anti-American like you are used to.

You can be a Cassandra only until it passes, and it will. This has been in the making for decades and now the ripe moment has arrived.
#15165461
Politics_Observer wrote:@Pants-of-dog

Well corporate America hasn't been getting along with the republicans here lately. Don't be so sure this bill won't pass the U.S. Congress in it's current state today.


The relationship between corporations in the US and the Republicans is irrelevant.

These huge and powerful corporations are not going to willingly lose profits just because they want to show the Republicans that they like the Democrats better.
#15165483
Politics_Observer wrote:@Pants-of-dog

You might be right. My bet is the bill will pass, but I could be wrong. Only time will tell.


It is true that we are simply making predictions. So either of us could be wrong. I would like to be, but US tech multinationals have the motive, means, and opportunity to kill this legally.

Why would they not do so?
#15165497
@Pants-of-dog

Just because our corporations have a lot of money to spend doesn't mean they will be able to kill a bill in Congress they don't like. Money plays a big factor in our politics, but it's not the only factor.
#15165524
Politics_Observer wrote:@Pants-of-dog

Just because our corporations have a lot of money to spend doesn't mean they will be able to kill a bill in Congress they don't like. Money plays a big factor in our politics, but it's not the only factor.


That is true.

Can you think of a factor that will make this more likely?
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