US wants a 15% minimum global tax rate or higher.

[sholomar]

I can definitely see the argument for a flat global corporate tax, but it should be graduated based on total net profit, meaning if you are an apple making massive profits you are taxed more. I have no problem with this at all. Make no profits by doing things like paying your employees more, pay no taxes.

[Brave New World]

Originally Posted by sholomar

I can definitely see the argument for a flat global corporate tax, but it should be graduated based on total net profit, meaning if you are an apple making massive profits you are taxed more. I have no problem with this at all. Make no profits by doing things like paying your employees more, pay no taxes.

Ireland is stating the minimum rate should e 12.5%, and even US allies want to make a fairer system for taxing digital technology giants as part of any such international plans.

The US president is also seeking to raise domestic corporation tax rates to 25-28 per cent, however many believe such plans will falter when they face US Congress and it is therefore not a realistic plan.

A lot of countries will never agree to this, whilst others will want major concessions from the US in exchange for support including Digital Service Taxes on US Tech companies, whilst others just feel it's a non starter and will never gain support from the US Congress.

There is also the problem that Biden is most likely a one term President, and a future Republican president may just undo any such agreement should it get through Congress, indeed it might be a Republican priority and election pledge, leaving countries who sign up to it high and dry.

Biden's s corporate minimum tax rate is falling, as other countries rebel -

"The new 15% push might not work either. OECD negotiators still will need to overcome resistance from low-tax governments such as Ireland (top corporate rate, 12.5%) and Hungary (9%). Earlier talks were likely to set a global rate nearer 13% to ease these objections."

So it's not down from 21% to 13% with Ireland, Hungary and others pushing for further reductions still, so this looks unlikely to change anything even in the unlikely event it were ever passed.

Biden’s Global Tax Trouble - WSJ

[swagger]

Originally Posted by Brave New World

You are quick to call other naive, but it's different when the criticism is directed at you.

I haven't taken a position on this. The ONLY thing I've commented on in this thread is what you've said, and my comment was on your general naivete.

I'm just going to say it outright. You should change your handle. You don't deserve to be using it.

[Goodnight]

Originally Posted by TMSRetired

Only for the US who cannot curtail it's spending policies.
Rather than "tax more", the Fed needs to do a major CULLING on their budget.

We need to curtail the spending and bring down corporate taxes so that US corporate taxes are more competitive globally.
You want all these programs then be prepared to foot the bill yourself and not rely on businesses to fund Fed programs.

The selling point to reduce corporate tax rates was they couldn’t compete with other countries and that it would bring back manufacturing to the US, the former was untrue and the other never materialized.

Approximately 40 corporations paid zero tax last year using the many loopholes available, write offs for investment in research, infrastructure and others. Add in the ability for some corporations to take advantage of low tax countries.

A world wide agreement on taxes makes a lot of sense, getting that is another story. But the OPs claim that this would disincentivize relocating is avoiding the issue.

[Brave New World]

Originally Posted by swagger

I haven't taken a position on this. The ONLY thing I've commented on in this thread is what you've said, and my comment was on your general naivete.

I'm just going to say it outright. You should change your handle. You don't deserve to be using it.

You have taken a position on this by claiming I am somehow naive in thinking that countries will reject this when all the evidence is that they already have.

Even US allies are not going to back this, and what was 21% is now down to 13% with pressure to reduce it further, and numerous commentators pointing out this is unlikely to get through Congress.

As pointed out in my previous post and as backed up by recent articles in both the Wall Street Journal and Financial Times (London).

It's naive to think the US can just steam roll such legislation across the globe, when in fact many countries rely heavily on low rates of corporation tax to attract business. and anyone who believes these countries are willing to give up such lucrative business is indeed the naive one.

[Enough_Already]

Originally Posted by anononcty

The US wants a 15% or higher minimum global tax rate.

https://www.cnbc.com/2021/05/20/us-p...en-higher.html

The Treasury Secretary wants to disincentivize relocating. Also a proponent of an 'international tax architecture'

Creepy, one world governmentish

It will be interesting to see how many countries flip off the US on this one.